Raipur resident held for Rs 34.23 crore GST fraud

Raipur, Aug 6 (PTI) Personnel of the Central Goods and Service Tax (CGST) and Central Excise on Tuesday arrested a man who created a web of fictitious firms to avail fake input tax credit of Rs 34.23 crore in Chhattisgarh's Raipur city, an official said.

CGST personnel conducted search operations and exposed a network of 6 bogus firms which were actively engaged in generating counterfeit invoices without any underlying supply of goods or services, he said.

Investigations revealed Raipur resident Badal Gour was the mastermind behind creating and managing these bogus firms, the official informed.

"He confessed to have created a web of fictitious firms for the purpose of passing fake input tax credits. Gour admitted to availing fake credit amounting to Rs 29.13 core and passed on Rs 34.23 crore to several other recipients," the official said.

He was produced before a local court, which sent him to 14-day judicial custody.

So far, the CGST department has apprehended 19 tax evaders in Chhattisgarh, the official further said. PTI COR RSY