The Directorate General of GST Intelligence (DGGI),Gurugram Zonal Unit, Gurugram has arrested one person namely Shri Ajit Jindal, Proprietor of M/s. Shree Balaji Enterprises, A-43, Saraswati Vihar, North-West, Delhi-110034. The above said Firm had taken ITC fraudulently to the tune of more than ₹ 5.06 crore involving invoice value of ₹ 28.11 crore on the strength of invoices issued by fake firms. The said firm thereafter, utilized fraudulently taken ITC to discharge their GST liability against the outward supply, with an ulterior motive to defraud the Government Exchequer.

Thus, Shri Ajit Jindal has committed offences under the provisions of Sections 132 (1) (c) of the CGST Act,2017; which are cognizable and non-bailable offences under Section 132(5) of the CGST Act,2017, being punishable under Section132(1)(i) of the CGST Act, 2017. Consequently, Shri Ajit Jindal was arrested on 12.07.2019 under Section 69(1) of the CGST Act, 2017, following which he was produced before the Chief Judicial Magistrate, Gurugram. The Chief Judicial Magistrate, Gurugram has sent Sh. Ajit Jindal to Judicial custody of 14 days.

Further investigations in the matter are in progress.

Fraudulent Input Tax Credit leads to arrest and criminal prosecution under GST provisions, with investigations ongoing. Fraudulent claim and utilisation of Input Tax Credit on the basis of invoices issued by fake suppliers resulted in criminal proceedings under CGST penal provisions. The proprietor allegedly availed and utilized illegitimate ITC to discharge tax liabilities, prompting arrest under the statutory arrest provision and remand to judicial custody while further investigations continue.