Vijay Gutte, the director of the upcoming biopic on Manmohan Singh, The Accidental Prime Minister, has been arrested for alleged Goods and Services Tax fraud. He was reportedly arrested by the Directorate General of Goods and Services Intelligence (DGGSTI) in Mumbai and has been booked under Section 132 (1)(c) of the CGST Act, which refers to ‘wrongful availment’ of input tax credit using bills and invoices that have been issued without any supply of goods and services.
Gutte’s firm, VRG Digital Corp Pvt Ltd has been accused of taking ‘fake invoices’ from Horizon Outsource Solutions Pvt Ltd, involving a GST of at least Rs 34 crore. The court filing also states that VRG Digital Group wrongly claimed a cash refund of Rs 28 crore from the government against CENVAT credit received for the fake invoices.
“The accused (Gutte) had not only availed of non-existent input tax credit (ITC) but further went ahead and fraudulently claimed refund of such ITC from the GST department on the strength of such fake/ bogus invoices to defraud state exchequer,” read the application, as reported by The Indian Express.
Gutte will be in judicial custody in Arthur Road jail till August 14, as ordered by a Mumbai court.
GST was initiated by Manmohan Singh administration and was then taken forward by the Narendra Modi government.Read More