This story is from February 13, 2019

Chennai trader held in Rajasthan for Rs 265 crore GST fraud

Chennai trader held in Rajasthan for Rs 265 crore GST fraud
Picture used for representational purpose only
CHENNAI: The GST commissionerate in Chennai has arrested Suresh Dewasi alias Sujaram, a native of Rajasthan, for claiming input tax to the tune of Rs 265 crore using fake invoices. Sujaram, who was based in Seven Wells area in North Chennai, had raised fake invoices worth Rs 2,000 crore in the names of 120 companies. He has been remanded in judicial custody for 15 days by the Economic Offences-II court magistrate.
A team of officials from the North Chennai GST commissionerate, which visited Rajasthan, arrested him from Siwana tehsil in Barmer district, where he was hiding.
They received tip-off about him following the arrest of two of his accomplices in December, said GST North Chennai assistant commissioner G A Harshanand.
Sujaram had been raising fake invoices and getting input tax benefit. “In our inquiry, it was proven that no transaction of goods had happened against those invoices,” said Harshanand.
“We found him at Malda village of Barmer district with the assistance of Rajasthan police,” the official said.
“Sujaram has admitted that he had issued fake invoices and had received commission based on the invoice value. Further investigations are on,” said Harshanand.
Recently, three people, including a chartered accountant based in Salem, were found to be raising fake invoices and availing input tax relief to the tune of Rs 235 crore. “At present the GST software does not match purchases and sales. This glitch has been one of the main causes for traders misusing input tax credit,” said a commercial tax official.
For every sale there is a purchase and vice versa. Matching purchases with sales is a problem at present. The department is working on ways to fix this loophole in the software. The modified software is expected to be rolled out in June.
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