Inter-state fake GST invoice racket busted
By TIOL News Service
NEW DELHI, NOV 19, 2020: AN inter-state tax invoice racket with fake transactions of over Rs 131 crore and fraudulent input tax credit of Rs. 26.09 crore was busted by the Nagpur unit of the Directorate General of GST Intelligence (DGGI) last Tuesday.
The Ministry of Finance (MoF) said the GST racket involved three taxpayers, one based in Maharashtra and two in Karnataka, who were involved in supplying contract services and labour supply.
The racket was uncovered when the DGGI were investigating a taxpayer who was involved in issuing fake invoices and availing fraudulent input tax credit (ITC) in the remote areas of Chandrapur district of Maharashtra. Intelligence revealed that taxpayer was fake and non-existent. Further investigations revealed that the documents uploaded on the GST portal as proof of address by the taxpayers like electricity bills etc., were all forged and fabricated.
The investigations also unearthed the details of two more taxpayers based in Karnataka who were found to have taken GST registration on the same date, had declared the same email addresses and were the sole suppliers and buyers of each other.
The matter has been taken up to apprehend the kingpin of the racket who is reportedly based in Karnataka.
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