CA Student Arrested For GST Fraud Of Rs 50 Crore

A 25 year old CA student Prince Manish Kumar Khatri has been arrested by GST officials for committing fraud of Rs 50 crore. 

He committed the fraud through Input Tax Credit facility available under the GST regime. 

Prince who hails from Ahemdabad was arrested by the officers of CGST, Vadodara-II.

During the data analysis of suspicious tax payers, officers found out that Prince had created more than 115 fake firms by using the id's of villagers for executing the fraud. 

He issued fake invoices to take input tax credit amounting to Rs.50.24 Crores. 

This fake and illegal credit was ultimately passed on in chain to other fake firms without an actual supply of goods and services.

During the investigation, Prince revealed that he had used the identity card of villagers to create the fake firms and promised them a monthly cash payment. 

Prince used to work for a firm and dealt with several companies. 

According to a GST official "after intensive interrogation & confronting him with the records accused have admitted his fraud". 

Prince has been arrested on 16 October 2020 under Section 69 of the CGST Act, 2017.

As per Section 132 of CGST Act, 2017 such person could be sentenced to jail upto 5 years with a fine for the alleged offence.

He has presented before the Chief Judicial Magistrate, Vadodara, who has remanded him for the judicial custody. 

Further investigations are said to be in progress.

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