As per recent reports, a man in Delhi scammed people by creating fake GST firms. Read the entire article to learn more about this news piece.
About the scam
Hasmukh Patel is the name of the person who pulled this scam. He reportedly created 36 fake companies and generated fake bills to scam people and mint money. Sumit Kumar, the commissioner of CGST, Bhiwandi, said, “A probe revealed that the accused (Patel) allegedly created a web of these fake firms, through which they generated fake invoices of Rs 132 crore and availed/passed on fake ITC of Rs 23.16 crore without supplying any goods or services. The accused confessed that he has floated 36 fake GST firms and established a network to pass-on fake Input Tax Credit which is spread across various GST Commissionerate,” also stated.
About the investigation
This investigation was reportedly done by the anti-evasion wing of the BHiwandi Commissionerate. This commissionerate was finding all the fake firms and when they investigated, they found one common link related to all these firms: Hasmukh Patel. This individual is currently deeply trapped in cases related to GST fraud.
About the evidence
Through the investigation, a lot of evidence was gathered against Patel, and he was arrested on September 9, 2022, under section 69 of the CGST Act, 2017 for contravention of section 132 of the CGST Act, 2017. This person will reportedly stay in jail till the 23rd of September.
CGST
CGST stands for central goods and services tax. Although this tax was proposed multiple times, this tax finally came into action in the year 2017. Essentials and needs do not come under this tax. This tax was levied to unite the nation. Instead of having different sorts of taxes, this one tax started getting levied on all the people. There is also a CGST which stands for state goods and services tax. The CGST goes to the central government whereas the SGST goes to the state government.
GST frauds
GST frauds have happened in the past as well. Various reports suggest that 17 people have been taken under arrest by the Bhiwandi commiserate in the past year for committing this fraud. If you feel like you are getting scammed or you’ve been scammed and the scam was related to GST then there are various hotline numbers available on the internet to help you out. Make use of those numbers to get yourself out of the situation and get your money back safely.
