A businessman was arrested by the state Goods Services Tax (GST) on Monday in a fake Input Tax Credit (ITC) case. According to GST, Dilipkumar Ramgopal Tibrewal was arrested for issuing bogus sale invoices of more than Rs 2,100 crore without any actual supply of goods or services. “Investigations revealed that he passed on fake ITC of more than Rs 185 crore to various other companies. This act of his has caused a serious loss of revenue to the government,” the department stated. The act constitutes an offence under section 132(1)(b) and (c) under the Maharashtra Goods and Services Tax Act / Central Goods and Services Tax Act.
The ITC is an option in the GST which allows the taxpayers to claim credit for the taxes paid on the purchase. The accused registered four different firms in his and his family member’s name under the act. He has also registered 26 other companies in the name of various other persons. Using the registrations of these 30 companies, Tibrewal issued bogus sale invoices of more than Rs.2100 crores without any actual supply of goods or services.
As per the rules, issuance of an invoice or bill without supply of goods or services and wrongful utilisation of ITC on a bill or invoice, without any supply of goods or services is a cognizable and non-bailable offence. Tibrewal was arrested as he is director of M/s. Augst Overseas Private Limited; director of M/s. Aaryanaman Global Private Limited, proprietor of M/s.Shagun Fibres and as the operator of 27 other firms, the department stated. Tibrewal was placed under arrest from his residence in Malad. Tibrewal was sent to judicial custody till December 5 by Additional Chief Metropolitan Magistrate, Esplanade.
