Chartered Accountant Held To Account: ICAI To Proceed Against Professional Arrested For GST Fraud

The disciplinary directorate of the Institute of Chartered Accountants of India (ICAI) has decided to proceed with actions against the chartered accountant arrested in Meerut on the last day, for availing of fake input tax credit under the GST regime, reports Taxscan.

The Meerut Zonal Unit Directorate General of GST Intelligence (DGGI), had reportedly arrested a chartered accountant named Gaurav Jindal, and sent him to jail.

“The arrested person is a chartered accountant (CA), and the disciplinary directorate is seized of the matter,” ICAI responded to Taxscan.

According to reports, a senior intelligence officer named Devender Kumar said, “These offenders created multiple companies/firms using either their PAN card and voter ID or employees of their firm solely for the fraudulent issue of bills without reporting any supply of goods.

A raid had revealed that the firms issued fake invoices of more than Rs 210 crore in value, thereby passing on and availing of input tax credit (ITC) of about Rs 50 crore illegally.

“These firms are not involved in normal business activities as they neither have any godowns for storage nor receive or supply goods. They wrongly availed ITC without actual purchase of goods in their firms/companies and encashed the same by the issuance of export invoices and claiming IGST refund thereon from customs,” said DGGI intelligence officer Aishwarya Atri.