Print

GST - ITC fraud - 30 fake firms busted

Published: Mar 08, 2020

By TIOL News Service

NEW DELHI, MARCH 08, 2020: THE CGST Delhi North Commissionerate arrested one person who received fake invoices valued at Rs 71,22,95,370/- involving fraudulent Input Tax Credit of Rs 12,82,05,579/- from 30 bogus firms.

The modus operandi was to create various fake firms in the name of employees of the operator of fake firms and other persons. Fake e-way bills were generated for several vehicle numbers. Bogus invoices were received by the accused from the operator of fake firms for the purpose of availment of fraudulent Input Tax Credit.  Payments were made to the operator of these bogus/fake firms through Bank & the same were received back in cash by the accused after deducting the commission (up to 50% of the tax value involved in the fake/goods-less invoices).

Simultaneously, the accused used to procure non-GST paid goods from small unregistered manufactures/traders without paying the GST and used to pass on the fraudulently availed ITC (as mentioned above) to his buyer.