Hyderabad: A GST fraud arrest was made after the Telangana Commercial Taxes Department held a trader for allegedly availing and passing on fraudulent input tax credit worth Rs.84.15 crore.
Officials said they acted after receiving intelligence inputs and analysing data linked to the trader’s business activity. They investigated Sandeep Kumar Goel, proprietor of SKG Trading Company. The probe found that he had allegedly availed and passed on input tax credit through invoices issued without any actual supply of goods.
According to the department, the transactions led to wrongful availment of input tax credit of about Rs.84.15 crore. As a result, the government exchequer suffered a major loss. Officials also said they had earlier given the accused several chances to correct the violations and repay the tax amount. However, the violations continued to draw scrutiny.
The department said the GST fraud arrest followed legal action under the Telangana Goods and Services Tax Act, 2017. Officials then produced Goel before a court, which remanded him to judicial custody.
GST fraud arrest uncovered links to two more firms
Further investigation showed that Goel was also linked to two other firms, HFC Steel Tubes and Valves and Vijay Industrial Needs LLP. Officials alleged that both entities were used to claim input tax credit without actual receipt of goods or services.
The department later cancelled the GST registrations of both firms. Officials said the action followed findings that the entities had figured in the fraudulent credit chain examined during the probe.
Authorities said the offence was serious because it involved fake invoicing and fraudulent claims under the GST regime. Therefore, they moved to arrest the trader after completing due legal procedure.
The department also said it would continue strict action against those involved in fake invoicing, fraudulent input tax credit claims, and other violations of GST law. Meanwhile, further investigation in the case remained in progress as officials examined the wider network and transaction trail.