Iron Trader Arrested for Rs 26 Crore GST Fraud Involving 10 Fake Firms

Authorities from the Central GST department in Delhi have arrested an iron and steel trader for orchestrating a massive GST fraud amounting to Rs 26 crore. The accused is alleged to have created a network of ten fictitious firms to carry out the scam. These fake companies were used to generate fraudulent invoices without any actual supply of goods. These bogus invoices were then used to illicitly claim Input Tax Credit (ITC) from the government exchequer. The arrest followed a detailed investigation that uncovered the intricate web of shell companies set up solely for the purpose of tax evasion. This case is part of a nationwide crackdown by GST authorities on fake invoicing and fraudulent ITC claims, which have been a major source of revenue leakage in the GST system. The department is continuing its investigation to identify other individuals involved in the network.