The Directorate General of GST Intelligence Hqrs. (DGGI Hqrs.) has arrested one person, namely, Shri Anupam Singla son of Shri Krishan Kumar Singla, permanent resident of Sirsa, Haryana, who had created about 90 fake firms for the purpose of issuing bogus invoices without supply of goods thereon. During the search conducted at the Delhi residence/offices of Sh. Anupam Singla, DGGI Hqrs. has recovered 110 debit/credit cards belonging to different persons; blank signed cheque books/ blank cheque books pertaining to 173 different bank accounts; blank bilty books belonging to various transporters; identity proofs of different persons; number of mobile SIM cards; and other incriminating documents. The firms opened by Sh. Anupam Singla issued invoices worth ₹ 7,672 Crore, including the circularly traded value, with a GST component of ₹ 660 Crore. The said firms have passed on fraudulent ITC to some of the well established Traders and Cotton Yarn Spinners who have availed of the same to discharge their GST liability against their outward supplies, with an ulterior motive to defraud the Government Exchequer. Thus, Sh. Anupam Singla has committed offences under the provisions of Sections 132(1)(b) and 132(1)(l) of the CGST Act, 2017, which are cognizable and non-bailable under Section 132(5) of the CGST Act, 2017 and are punishable under Section 132(1)(i) of the CGST Act, 2017. Consequently, Sh. Anupam Singla was arrested on 18.07.2019 under Section 69(1) of the CGST Act, 2017, following which he was produced before the CMM, New Delhi at Patiala House Courts. The CMM has remanded Sh. Anupam Singla to judicial custody of 14 days on 19.07.2019. During the investigations conducted so far into the fake billing racket in the cotton industry, the DGGI Hqrs. has recovered an amount of ₹ 32.60 Crore towards the GST evaded. Further investigations in the matter are in progress.

Bogus invoices and fraudulent input tax credit prompt arrest and ongoing GST investigation under penal provisions. A person was arrested for creating numerous shell firms to issue invoices without supply and to pass fraudulent input tax credit to traders and cotton yarn processors. Searches recovered identity documents, bank instruments, transporter papers, SIM cards and other incriminating material. The conduct is treated as cognizable, non-bailable GST offences under the CGST penal provisions; the individual was arrested and remanded while investigations continue and reported recoveries toward evaded GST have been made.