Person arrested for availing ITC from non-existent firms involving a tax of Rs. 7 Cr. approx

A search was conducted at the premise of M/s S V Industrial Enterprises (GSTIN: – 06ACGPG7686J1Z6) Loha Mandi, Nehru Ground, NIT Faridabad wherein it was found that the said taxpayer was availing and passing on fraudulent input tax credit. It was also found that the said taxpayer was availing credit from fake / non-existent firms from Delhi which were found to be non-existent / suo-moto cancelled by tax authorities. This credit was also passed by the said taxpayer to its recipients.

The said firm had availed fraudulent input tax credit of taxable value of approx. Rs. 40 Cr. involving a tax amount of approx. Rs. 7 Crore.

The taxpayer was presented before the District Court, Faridabad and the Hon’ble Court has remanded the accused to judicial custody for 14 days. Further, investigation is in progress.

It is re-iterated that the Government of Haryana has zero tolerance for recipients of fake / fraudulent input tax credit and appropriate action including arrest would be initiated against recipients of fraudulent input tax credit under the provisions of the HGST Act, 2017.

The Press Release can be accessed at - https://www.a2ztaxcorp.com/wp-content/uploads/2022/01/Arrest-of-Vinod-Goyal-Loha-Mandi-Faridabad-for-availing-fraudulent-credit-in-GST..pdf