The Directorate General of GST Intelligence (DGGI), Rohtak Regional Unit, (under Gurugram Zonal Unit) has arrested one person namely, Sh. Satinder Kumar Singla, of Hisar who was found involved in issuing fake invoices from various firms without actual movement of goods having taxable value of ₹ 75 crore (approx.) and fraudulently passing ITC amounting to ₹ 13.08 crore.

He passed on such fraudulent ITC to some of the buyers who availed of the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer. During the course of investigation, Shri Satinder Kumar Singla has admitted his involvement in issuing only invoices without actual movement of goods for earning commission and some of the cash entries in the records resumed pertained to such commission.   

Thus, Shri Satinder Kumar Singla has committed offences under the provisions of the Central Goods & Services Tax Act (CGST), 2017. Consequently, Shri Satinder Kumar Singla was arrested on 12.11.2020 under Section 69 of the CGST Act, 2017, following which he was produced before the Chief Judicial Magistrate (CJM), Rohtak. The CJM, Rohtak, has consigned Sh. Satinder Singhal to judicial custody of 14 days. Further investigations in the matter are in the progress.

Fraudulent Input Tax Credit: individual arrested for issuing fake invoices and passing ITC to evade GST liability. Allegations concern issuing invoices without actual movement of goods to enable buyers to avail input tax credit and discharge GST liability. The operator admitted issuing invoices for commission and recording related cash entries. The conduct is described as fraudulently passing Input Tax Credit. Enforcement action included arrest under the CGST Act and production before a magistrate, with judicial custody ordered; further investigation is ongoing to ascertain the extent of ITC diversion and involvement of other parties.