GST fraud in Meerut: Crime Branch arrests accused over alleged illegal ITC claims

Police in Meerut said the Crime Branch uncovered a GST fraud linked to fake firms and invoices used to claim illegal input tax credit. One accused, Pramod Kumar, was arrested after an investigation tied to a Ganganaagar police station case. Officials estimate an INR 3 crore loss, with the total potentially higher.

Meerut’s crime branch has detected a Goods and Services Tax GST fraud worth crores. Police said one person was arrested in the case on Wednesday. The alleged scam surfaced while officers investigated a separate case at Ganganaagar police station. Officials said the fraud involved fake firms and false billing. The case focuses on suspected misuse of tax credits and evasion.

Police said the probe pointed to Pramod Kumar, 56, from Pratap Vihar Colony in Brahmpuri. Officials said Sarvang Jain and others were also linked to the activity. Investigators said the group formed a chain of fake firms. Police said the setup was used to move invoices and hide real business activity.

GST fraud in Meerut: alleged loss and wider amount

Officials said the accused illegally took input tax credit ITC by using fake invoices. Police estimated the government suffered a loss of around Rs 3 crore. Investigators said early findings suggest the overall amount could be higher. Police said the suspected network operated through several connected entities that supported the false credit claims.

Police said the GST department issued several notices to the accused. Officials said there was no response to those notices. Investigators treated the lack of replies as a key warning sign. Police said this helped strengthen the case as enquiries continued. Officers then moved to track the main suspect using technical and field inputs.

GST fraud investigation in Meerut: arrest and methods used

Police said the main accused was arrested on March 31 near Saraswati Lok Colony. Officials said the arrest followed technical evidence and location inputs. Investigators said the group used fake Aadhaar and PAN details. Police said these documents were used to set up shell companies that showed paper transactions.

Investigators said the firms were used for circular trading to create a false trail. Police said the accused also allegedly showed lower sales in GST returns. Officials said this helped evade tax payments while supporting the fake invoice cycle. Police said these steps were used together to claim ITC without real taxable supply.

Police said efforts are continuing to find others linked to the racket. Officials said teams are tracing Sarvang Jain and the remaining accused named in the inquiry. Investigators said more arrests may follow as evidence is checked. Police said the crime branch will keep examining linked firms and documents tied to the GST fraud.

With inputs from PTI