Delhi Government Busts GST Refund Fraud Worth ₹14 Crore

The Delhi government's department of trade and taxes has cracked a massive Goods and Services Tax (GST) refund fraud case, involving the creation of fictitious firms to illegitimately claim refunds worth approximately ₹14 crore. Through a thorough investigation, involving data analytics and scrutiny of banking transactions, the department has recovered ₹1.16 crore so far and is working to retrieve the remaining amount. The authorities have arrested the proprietor involved in the scam and frozen 45 bank accounts linked to 27 implicated entities.

Key Takeaways:

• The GST refund fraud case involved the creation of four fictitious firms to claim refunds worth approximately ₹14 crore.
• The department used data analytics and scrutiny of banking transactions to trace the flow of funds across multiple entities in Delhi, other states, and international jurisdictions like Hong Kong and Singapore.
• The investigation revealed a network of individuals using the same PAN, mobile numbers, and email addresses for the fraudulent firms.
• As an immediate enforcement measure, the registration of Delhi-based entities has been suspended, and information has been shared with jurisdictional authorities in other states for further action.
• The Income Tax Department has been informed, and the department has recommended blocking PANs associated with the fraudulent activities.

Statistics:

• ₹14 crore: The approximate amount involved in the GST refund fraud case.
• ₹1.16 crore: The amount recovered so far by the department.
• 4: The number of fictitious firms created to claim illegitimate GST refunds.
• 27: The number of implicated entities linked to the 45 frozen bank accounts.
• 45: The number of bank accounts frozen by the authorities.
• 1: The Economic Offences Wing (EOW) where an FIR has been lodged.

Sources:

• Hindustan Times