A major GST fraud was unearthed when Sarvesh Kumar Pandey was arrested in Raipur for allegedly evading Rs71.38 crore in Goods and Services Tax (GST) through the use of bogus input tax credits (ITC). The arrest was made on Saturday by officials from the Central Goods and Services Tax (CGST) department.
Pandey, in collaboratients with Hemant Kasera, who was arrested last month, is accused of using fake bills from 13 fictitious firms to create and pass on bogus ITC. Kasera allegedly managed these fake firms and provided fraudulent credits amounting to Rs62.73 crore, of which Rs51.42 crore was transferred to other recipients until February 2024.
Pandey is accused of purchasing fake bills not only from Hemant Kasera but also from several other fraudulent firms, which helped him avail Rs71.38 crore in bogus ITC to evade GST. The scam was carried out over a period of time, with Pandey benefiting from illegal credits that he used to undercut legitimate tax payment.