Oppo senior executive arrested in ₹19-crore tax fraud
MUMBAI: The Central Goods and Services Tax (CGST) department on Tuesday arrested a senior executive of a Chinese smartphone maker for purportedly availing input tax credit (ITC) of ₹19 crore on fake invoices
MUMBAI: The Central Goods and Services Tax (CGST) department on Tuesday arrested a senior executive of a Chinese smartphone maker for purportedly availing input tax credit (ITC) of ₹19 crore on fake invoices.
According to the officials from CGST Bhiwandi Commissionerate, the arrested, identified as Mahendra Kumar Rawat, is manager of finance and accounts at Oppo Mobiles India Private Limited.
The anti-evasion wing of CGST, which is probing the case, has found that Oppo Mobiles India Private Limited’s Maharashtra unit was involved in allegedly availing input tax credit without receipt of any goods.
“The supplier of OPPO Mobiles India Pvt ltd, M/S Gain Hero India Private Limited, was found to be non-existent at its principal place of business. In this connection, 16 e-way bills for the said transaction were verified and found to be fake,” the agency said in a release on Wednesday.
Further, statements of the transporters and vehicle owners were recorded wherein it was revealed that there was no supply of goods to OPPO Maharashtra, it added.
Rawat, who is the authorised signatory of Oppo Mobiles India Private Limited, has played a key role in availing of the said fraudulent ITC amounting to ₹19,27,54,093 against the invoices amounting to ₹107,08,56,072 issued by Gain Hero India Private Limited, without receipt of the goods, the CGST officials said.
Based on material evidence gathered during the investigation, Rawat was arrested on Tuesday under the section 69 of the CGST Act, 2017 for contravention of section 132 of the same ACt. The accused has admitted in his statement that the e-way bills generated are fake, the tax agency said.
A local court has remanded him in judicial custody till April 3.
Input tax credit is an option that allows taxpayers to claim credit for taxes paid on purchase. Issuance of an invoice or bill without supply of goods or services and wrongfully availing the ITC on a bill/invoice, without any supply of goods or services is a cognisable and non-bailable offence.