Group busted for supplying fake GST invoices worth Rs 1,000 crore: Finance Ministry

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Prima facie fraudulent input tax credit of about Rs 140 crore has been misappropriated by using invoices involving an amount of Rs 1,040 crore, it said.

The Goods and Services Tax (GST) authority in New Delhi has unearthed a racket involved in tax evasion through fraudulently transporting goods either without invoices or raising fake bills without actual movement of goods, an official statement said.

“The accused was found to be operating 10 fake firms which were created for rotation of money and fraudulent input tax credit (ITC), thus defrauding the exchequer,” the finance ministry said in a statement.

Prima facie fraudulent ITC of about Rs 140 crore has been misappropriated by using invoices involving an amount of Rs 1,040 crore, it said.

“One person has been arrested and remanded in judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), New Delhi, at Patiala House Court,” it said.

The modus operandi of the accused was to obtain GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a place in Tilak Bazar in Delhi, it said.

“On preliminary scrutiny it appears that there is no nexus between inward and outward supplies of the errant firms. Further, the said fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the exchequer,” it said.

“Investigations are underway to identify the key beneficiaries of this racket and to recover GST involved,” it said.

The accused has committed offences under various provisions of the Central Act 2017, which are cognisable and non-bailable, it said. The accused was arrested on Monday and was remanded in judicial custody for 14 days on Tuesday by the court.

Source : https://www.hindustantimes.com/india-news/gst-authority-busts-racket-running-bogus-invoices-worth-over-rs-1-000-crore/story-adMtCOkBzN3X07btF07h3O.html

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