The Central Goods and Services Tax (CGST) Commissionerate’s Anti-Evasion Branch in Gurugram has arrested an individual for allegedly orchestrating a massive GST fraud of Rs. 15.56 crore through fake invoices and bogus input tax credit (ITC) claims.
The accused, identified as Gaurav Jain, is alleged to have issued fake invoices amounting to Rs. 101 crore, enabling wrongful availment and passing of fraudulent ITC. The case has been filed under the provisions of the Central Goods and Services Tax Act, 2017.
Following his arrest, Jain was produced before a court on Friday, which remanded him to 14 days of judicial custody. The investigation, based on data from the GST Prime portal and e-way bills, revealed a web of fictitious firms created solely for the purpose of tax evasion.
The Gurugram CGST Commissionerate uncovered that these shell companies, lacking any legitimate business activity, were being used to generate fake invoices. These firms had no actual movement of goods or genuine transactions, according to officials.
The accused had been absconding for the past five months and was apprehended after detailed surveillance and electronic tracking. Officials said that his actions caused a direct loss of Rs. 15.56 crore to the government exchequer.
The CGST team also seized critical electronic evidence, including email communications and fake digital signatures used in the scam. Gaurav Jain holds a Master’s degree in Commerce and was reportedly aware of the implications of his actions under the GST law.
The arrest was made under Section 69(1) of the CGST Act, 2017. Authorities are continuing their investigation and have not ruled out further arrests in connection with the scam.
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