Indore: Bogus ITC claims go up from `32 cr to `150 cr, investigation reveals

Indore: Startling facts have surfaced as a result of ongoing investigation into business transactions worth Rs 1100 crore carried out by bogus companies that existed only on paper. It has now been revealed that Input Tax Credit (ITC) worth Rs 150 crore was claimed and received by the operators of bogus companies from the government.

Earlier, this amount stood at Rs 32 crore, which came to light during searches conducted by central and state GST department across the country including Indore on December 13, 2018. As the investigation will advance, the amount of Rs 150 crore claimed as bogus ITC may increase.

In the mean time, the CGST department has started recovery of Rs 3 crore bogus ITC claim including Rs 1 crore from Indore GST commissionerate. A total sum of Rs 200 crore was claimed as ITC out of which Rs 150 crore has found be based on bogus claims.

In this case, four key persons and some tax consultants are also on the radar. This follows arrest of one of the master minds of Jagdish Kanani from whom the CGST department investigation team has received fresh clues. Neerav Kumar Mallick, Commissioner, CGST Commissionerate Indore, said the scam busted on December 13 and it was estimated that Rs 32 crore as bogus ITC claim was drawn by scamsters, which was a tax evasion.

Meanwhile, CGST Indore Commissionerate has started recovery of Rs 1 crore from Jagdish Kanani who is presentably in remand of CGST following his arrest on last Thursday. Mallick said Kanani carried out bogus transaction on the basis of which he claimed ITC benefit for last six months.

Though he is under remand, Kanani is not cooperating with the department as he is not disclosing details and names of his associates. Therefore, the department is investigating from call details of his mobile phone. 15 firms of city on radar
Mallik said about 15 firms, which are mostly floated by Kanani, are under department’s scanner. For floating bogus firms, Kanani used KYC documents and mobile phone numbers of laymen in exchange of money. The department is considering sending notices to those laymen too.

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