CA Final student arrested in GST scam of Rs 50.24 Crores

25-year-old CA Final Student was arrested by the Goods and Service Tax (GST) officials for committing fraud to the tune of Rs 50.24 Crores through input tax credit (ITC) facility.

Prince Manish Kumar Khatri, a resident of Ahmedabad, who is 25-year-old CA student, was arrested by CGST–II Vadodara for committing an ITC fraud. The information about this fraud was discovered by the GST Officials during data analysis of suspicious taxpayers.

The GST Officials has revealed that Mr. Khatri had floated more than 115 fake firms for executing the fraud. He made fake invoices to generate ITC amounting to Rs 50.24 crore. The illegal and fake credit was eventually passed on in chains to other fake firms without any actual supply of goods and services.

CA Final Student Mr. Prince Manish Kumar Khatri has told the GST Officials that he has used identity cards of villagers from Dahod and Ahmedabad to create the fake firms. He had promised the villagers a monthly payment of cash.

He used to work for a firm and dealt with several companies. He also confessed that he had made a web of fake firms to benefit some existing and real companies.

The CGST officers arrested him under Section 69 of the CGST Act, 2017 on 16. October 2020, as he had committed an offence under Section 132(1)(b) of the CGST Act, 2017. He was examined at SSG Hospital after the arrest and after that was produced before the Chief Judicial Magistrate, Vadodara, who has remanded him for the judicial custody.

Further investigations are still in progress.

With Warm Regards,

CL Bureau.