1 Racketeer arrested in Rs 12 Cr fake GST invoice scam in Delhi, web of fraud companies found

New Delhi: The CGST Delhi North Commissionerate on Saturday arrested one person who received fake/goods-less invoices valued at Rs 71.22 crore involving fraudulent input tax credit (ITC) of Rs 12.82 crore from 30 bogus/fake 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 ITC.

Payments were made to the operator of these bogus/fake firms through banks and 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 to his buyer.

The accused has committed an offence under section 132(1)(c) of CGST Act, 2017, which is cognizable and non-bailable under section 132(5) and punishable under clause (i) of subsection (1) of Section 132 of the Act. Accordingly, the accused was booked under Section 69(1) of the CGST Act on March 7, 2020, and produced before the Chief Metropolitan Magistrate, Patiala House Courts, where he was sent to judicial custody till March 21, 2020. Further investigation in the case is in progress.


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