Anti-Evasion wing of CGST Delhi detects GST fraud of Rs 241 crore, 1 held

Speed Post News Network

New Delhi : The Anti-Evasion wing of CGST Delhi South Commissionerate on December 26, 2019, detected here yet another case of fake invoicing and GST fraud alongside a new modus operandi of defrauding the exchequer by exploiting the facility of refunds given for inverted duty structure. Over 120 entities involved in the transactions have come to notice so far involving fake invoicing of Rs. 1,600 crore and tax evasion of Rs 241 crore.

The investigations have unearthed a well organised racket of creating bogus firms, issuing fake invoices, and bogus e-way bills to generate and encash tax credits.

The main culprit was arrested on December 26, 2019, as per the provisions of Section 69 of the CGST Act, 2017, and produced before judicial magistrate the same day itself and remanded to 10 days of judicial custody. The racketeer had created several firms on the basis of unauthorised access to identity documents of various persons, according to a PIB release.

The new modus operandi was uncovered by a team of investigators, who worked unceasingly over many weeks to uncover the maze of companies created across India. Incriminating electronic evidences have been recovered from the premises of the accused.