Global Tribune Desk (New Delhi): A couple of partnership companies have been identified as fraud entities by the officers of CGST Gautam Budha Nagar, New Delhi who has claimed a large amount refunds against Input Tax. Investigations showed that these firms have already refunded the claims that figured Rs 264 crores in which only 60 crores have been recovered till now.
Further inquiry revealed that two masterminds have encrypted the whole structure and showed all the business activities and transactions in papers only and there is nothing in reality that included tobacco, woven fabric, cotton yarn and other types of yarns. Also, they have produced invoices for the passing of input Tax credit that amounted to Rs 1892 crores. Based on their confession, they were arrested on 16th March under Section 69 of the CGST Act. The search operation is going on in the residences of the masterminds for any recovery.