Meerut (UP), Apr 1 (PTI) The crime branch unit in Meerut has unearthed a Goods and Services Tax (GST) fraud involving crores of rupees and arrested one accused in connection with the case, police said on Wednesday.

The incident came to light during the investigation of a case registered at Ganganaagar police station.

During the probe, it was found that Pramod Kumar (56), a resident of Pratap Vihar Colony in Brahmpuri, along with his associate Sarvang Jain and others, had created a network of fake firms to carry out the fraud, the police said.

According to officials, the accused availed input tax credit (ITC) illegally through fake invoices, causing an estimated loss of around Rs 3 crore to the government exchequer.

Preliminary investigation suggests that the total amount involved could be higher, they said.

The police said that despite multiple notices issued by the GST department, the accused failed to respond. Acting on technical evidence and location inputs, the main accused was arrested on March 31 near Saraswati Lok Colony.

Investigators revealed that the gang used fake Aadhaar and PAN details to set up shell companies and engaged in circular trading. They also allegedly underreported sales in GST returns to evade taxes.

The police said efforts are underway to trace and arrest the other accused involved in the racket. PTI COR CDN NB NB

GST fraud through fake firms and fake invoices exposed alleged illegal input tax credit claims and circular trading. GST fraud involving fake firms, shell companies, fake invoices and circular trading was detected during a police investigation. The alleged racket used fake Aadhaar and PAN details to unlawfully avail input tax credit and underreported sales in GST returns, causing an estimated loss of around Rs 3 crore to the government exchequer, with the total involvement suspected to be higher. One accused was arrested, while efforts continued to trace other persons involved.