Hyderabad: Sleuths of Director General of GST Intelligence arrested former Managing Director of MSR India Limited, a company engaged in manufacturing of copper bottles. The brand known as Dr Copper were booked in a GST fake invoices (bills) scam.
The GST Intel-wing sleuths, on Friday, took into custody K.V Rajashekar Reddy former MD of MSR India Limited. The man had quit the company after a GST case booked against the company in 2019 March. The company, located in Bachupally- Jeedimetla is associated with few defence and aviation sectors across India. It currently has four directors on the board.
Investigation revealed that, the accused(referring to KV Rajashekar Reddy ) acquired fake invoices to boost the balance sheets
‘The company created fake invoices to a tune of Rs 38 crore’ a source said. GST officials found Rs 19 crore of Input Tax Credit that were fraudulently obtained .
The former MD was produced will be produced in the court to be remanded to judicial custody.
A source told NewsMeter , “ Invoice is evidence of ‘movement of goods, based on these bills, companies claim input-tax-credit. In simple words, Input Credit means at the time of paying tax on sales, companies can reduce the tax you have already paid on purchases. Fake bills are raised to evade GST. Inputs received against firm were, on their alleged involvement in raising bogus invoice to claim the tax-credit worth crore. This is a violation and punishable act under section 132 of CGST act 2018 and is liable for arrest under section 69 of CGST act 2017”.