CGST Uncovers Rs 6.55 Crore GST Fraud in Sirmaur, Pharma MD Arrested
The Preventive Wing of the Central Goods and Services Tax (CGST) Commissionerate, Shimla, has uncovered an alleged GST fraud worth Rs 6.55 crore in the Kala Amb industrial area of Sirmaur district. The investigation has also led to the arrest of Gaurav Jain, managing director of pharma company M/s Samay Pharma India Private Limited, Trilokpur.
According to CGST officials, Samay Pharma and M/s Dual Healthcare allegedly claimed input tax credit (ITC) using fake invoices issued by several firms that either did not exist or were found to be non-genuine.
The investigation found that ITC worth around Rs 5.55 crore was allegedly claimed through invoices linked to 10 such firms. Officials said the invoices showed the purchase of goods, but there was no evidence to confirm that the goods were actually transported. E-way bills and toll-plaza records also did not support the movement of the goods mentioned in the invoices.
Officials further alleged that the fake ITC was later included in GST refund claims, through which an attempt was made to get the money back from the government.
During the investigation, officials found several suspicious transactions, fake firms, invoices without actual movement of goods and shell entities allegedly being used to manipulate the GST credit and refund system.
The CGST team recorded statements from several people and examined digital evidence as part of the investigation. Based on the evidence collected, Gaurav Jain was arrested under Section 69(1) of the Central Goods and Services Tax Act, 2017.
