Fraudulent GST refund claim of Rs 45.67 crores unearthed in Telangana

Hyderabad: The Telangana Commercial Taxes department said it has detected a case of fraudulent GST refund claim amounting to Rs 45.67 crore availed by seven people by floating fictitious firms.

One person who fraudulently claimed refund was arrested on October 11 and produced before the Court for Economic Offences here and remanded to judicial custody, an official release said.

These fictious firms were started with an intention to avail the GST refund fraudulently under inverse tax structure, it said.

It was shown by the fraudsters that the spare parts of electric vehicles were purchased from some fictitious firms that are being registered at Delhi and the sales of electric bikes were shown in Telangana.

Later, on verification by the department, it was revealed that there was no manufacturing activity and there was no movement of goods from Delhi to Hyderabad, the release said adding investigation against such fraudulent firms was already initiated and efforts were going on to arrest the culprits.

Investigation against other persons involved in the network of fraudulent refunds was being initiated by the department with the help of police, the release added.