KOLKATA: A fake GST racket, where invoices were issued without actual supply of goods, was busted by officers of Central GST, Kolkata North Commssionarate, on Friday. Four persons, including two chartered accountants, were arrested and produced in the court of CJM, Alipore. They have been remanded in judicial custody till June 10.
The CGST officers found that the accused were allegedly involved in issuing fake invoices primarily valued at Rs 721 crore and the racket had consequently caused a loss of Rs 98.7 crore to the government exchequer.
The probe revealed that the organization had set up base in the Burrabazar area and kept in touch with some CAs. When some businessmen approached the CAs for fake invoices, they were directed to the middlemen who charged a hefty commission to provide the invoices. The accused offered common people interest-free loans and other financial benefits in lieu of their KYC details.
These details were then used to set up fictitious companies to issue fake invoices.
Officers said the role of other persons are also being investigated with a focus on beneficiaries of fake credit.
According to commissioner of Kolkata North CGST, D Nagvenkar, the estimated loss is likely to increase as more detections come to light. The commissioner emphasised that no one should divulge KYC details to unknown persons for a small gain.
Source : https://timesofindia.indiatimes.com/city/kolkata/fake-gst-racket-busted-4-arrested/articleshow/69696527.cms