CGST unearth Rs 88 crore tax evasion in Kushal Ltd

Central Goods and Services Officials (CGST) officials bursted a racket of tax evasion to the tune of Rs 88.78 crore and arrested Sandeep Agrawal, CMD of Ahmedabad-based Kushal Ltd. Agrawal had used fake bills to claim Input Tax Credit (ITC), without actual transportation of goods.

According to a statement of Preventive Wing of Central GST, Agrawal used a number of companies from different parts of the state for issuing of bill and receiving invoices. However, these transactions were only on paper and did not involve any transportation of goods. When questioned after the arrest, Agrawal confessed that there were no transport documents like e-Way Bill. The firm got and sold fake invoices involving transactions worth Rs 672.32 crore, and claimed ITC worth Rs 88.78 crore, causing equivalent revenue loss to the state exchequer.

"The central GST department is actively monitoring such frauds involving issuance of fake invoices which leads to major evasion of GST and the department resolves to take suitable action against individual and companies involved in such acts to protect government revenue," the statement said. The offence committed by Agrawal is cognizable and non-bailable. CGST authorities produced Agrawal before Additional Chief Metropolitan Magistrate. Incidentally Income Tax department had also conducted raids on Kushal Ltd and seized cash as well as gold.