Arrest Over ₹8.36 Crore Fake ITC Claim Using Bogus GST Invoices: Punjab & Haryana HC Grants Bail Citing Completed Investigation and Five Month Custody [Read Order]

High Court Grants Bail in ₹8.36 Crore GST Fraud Case

The Punjab & Haryana High Court has recently granted bail to an individual accused of making fraudulent Input Tax Credit (ITC) claims amounting to ₹8.36 Crore. The case revolves around the alleged use of bogus Goods and Services Tax (GST) invoices to illicitly claim ITC, a practice that severely impacts the nation’s tax revenue.

Details of the Alleged Fraud

The investigation suggests the accused allegedly created a network of shell companies to generate fake invoices without any actual movement of goods or services. This allowed for the claiming of fraudulent ITC, leading to a significant loss to the government exchequer. The Directorate General of GST Intelligence (DGGI) is reported to be actively cracking down on such fraudulent activities nationwide.

Grounds for Granting Bail

The High Court considered several factors before granting bail. Key among these were:

• The fact that the investigation into the matter is complete.
• The accused had already spent approximately five months in custody.
• The absence of any prior criminal record against the petitioner.

Taking these points into consideration, the court deemed it appropriate to grant bail, subject to the accused furnishing the necessary bonds before the trial court.

Implications for GST Enforcement

This case highlights the ongoing challenges faced by authorities in curbing GST evasion. While bail has been granted in this particular instance, the case serves as a reminder of the strict measures being taken to combat fraudulent ITC claims. The government is continuously working to strengthen GST enforcement and close loopholes that allow for such activities.