• Notification Date: 12-12-2022
• Notification No: N/A

5 Individuals, including CA, arrested in GST Scam

Five people have been arrested on Friday on the accusation of Rs 11 crore GST scam reported in 2019 involving around 100 shell companies. The arrested people include a chartered accountant (CA). 

According to the police officials, the scam could involve misappropriation of GST funds of Rs 100 crore. The arrested five individuals included a man who had been absconding for the last three years. The police had announced a reward of Rs 30,000 on him. 

The accused individuals were Ishwar Chand Garg of Sector 45, Yashpal Jindal of Sector 37, Vinay Jain of New Delhi, Sushil Singla of New Delhi, who is a chartered accountant, and Anuradha Sharma from Khuda Jassu village in Chandigarh. Police said that Rs 30,000 reward was announced on Ishwar Chand. 

SP (EOW) Ketan Bansal said that a case was registered in Economic Offences Wing on the complaint of Sanjeev Madaan, Excise & Taxation Officer-cum-Proper Officer against Prop. of M/s AK Trading Company in 2019. The complainant had reported that a person called Anuradha, who is the proprietor of A K Trading Company in connivance with other associates obtained a registration under UT GST Act 2017, CGST 2017 and IGST Act 2017. The main business of the firm was to supply all kind of scrap, as per registration application on the GST portal.  

The Excise and Taxation Inspector submitted his report in February 2019. the report stated that there was no business activity from the business premises at Khuda Jassu, Chandigarh, in respect of above-mentioned company. At the time of registration, the accused person made the transaction of payable taxable supplies of goods to the tune of Rs 21,68,92,963. She had not deposited the due tax of Rs 9 crore in government treasury.  

In another FIR, the accused made transaction of payable taxable supplies of goods to the tune of Rs 8 crore approximately. Like before, she had not deposited the due tax of Rs 2.5 crore approximately in government treasury. 

During the investigation, the police found that accused person opened firm AK Company which deals in scrap. Two accounts of company were opened in HDFC and Axis bank for transaction purpose by accused Ishwar Chand and Yashpal Jindal. The fake rent agreement of principle place of business at Khuda Jassu was prepared in the name of one Anuradha Sharma (servant of accused Yashpal Jindal), and there was no physical activity of business going on there. Both accused Ishwar Chand and Yashpal Jindal are close relatives. In December, 2022, accused Ishwar Chand joined the investigation in EOW, Sector-17, Chandigarh. 

During the interrogation, it has been found out by the police that Ishwar Chand in connivance with Yashpal Jindal, Sushil Singla, and Vicky Jain had planned of a conspiracy at Delhi in the office of CA Sushil Singla. Their plan was to open fake firms and bank accounts to carry out bogus business transactions, and further claim GST benefits and cause loss to exchequer. 

They opened a fake firm of scrap in the name of A K Trading company for the purpose, and prepared fake bills to avail GST refund (in the form of input credit) from government.