The director and accountant of a private firm were arrested in Chhattisgarh's Raipur on Tuesday for evasion of the Good and Services Tax (GST) by passing on fake input tax credit (ITC) of Rs 1.92 crore, an official said on Tuesday.
Based on a tip-off, officials of the CGST and Central Excise raided the premises of Topisto Products Private Limited, the official said.
The firm was allegedly involved in large-scale evasion of GST by generating fake invoices and passing on fake ITC without supplying any goods or services, he said.
Investigations have revealed that the director and the accountant of the company had allegedly created fake firms and generated fake ITC of Rs 114.70 crore and already passed on Rs 1.92 crore, the official said.
The accused were planning to further pass on fake ITC of Rs 112.78 crore, he said.
The duo has been arrested under relevant provisions of the Central Goods and Services Tax Act 2017, the official added.