The Uttar Pradesh cybercrime team claimed to have exposed a ₹215 crore ITC (Input Tax Credit) fraud, with the arrest of Sanjay Singh Yadav, 30, from Lucknow on Thursday. He was committing fraud by generating fake invoices and E-way bills in the name of bogus companies established by him for this specific purpose.
UP police cybercrime cell has unraveled a multi-crore racket on Thursday with the arrest of one from Lucknow. Officials state that the accused is connected to the identical nexus wherein the Items and Companies Tax (GST) division had exposed the ₹1700 crore ITC fraud within the title of 650 bogus corporations of Meerut in January 2021.
Manufacturers and dealers can claim an input tax credit (ITC). On inputs purchased throughout the manufacturing process, these taxpayers are eligible for a tax credit. In a similar vein, a trader will receive an input tax credit on items purchased specifically for resale. Only commodities used in the manufacturing or processing process qualify for this credit, which is available on capital goods purchases done within the state. This tax credit is state-specific.
The input tax credit must be returned to the authorities if the finished product is sold outside the state of manufacture. Additionally, the input tax credit is not valid if the finished product includes tax exemptions. The tax credit is usually carried out over three years, but state-specific regulations apply.
According to Triveni Singh, superintendent of police (SP), cybercrime, the connection was discovered while looking into cases filed by Azim Iqbal Khan at the PGI police station in Lucknow on October 9, 2020, and Vishal Kashyap at the Aminabad police station in Lucknow on August 10, 2019. He claimed that both incidents involved the distribution of phony invoices and E-way bills without the actual supply of the items, as well as the transfer of the allegedly fraudulent input tax credits (ITC) to other businesses in exchange for payment.
The SP said that during the search of his offices in Delhi and Uttar Pradesh, the cybercrime team discovered incriminating documents, including details about 37 bank accounts belonging to a bogus company. He claimed that transactions totaling Rs 215 crores were identified from these bank accounts, and the accused failed to provide any information on the source of the money.