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New Delhi : Central GST Delhi North Commissionerate has unearthed a racket involving supply of goods-less invoices and invoice-less goods. One person has been arrested and remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), Patiala House Courts, New Delhi. The accused was found to be operating 10 fake firms, which were created for rotation of money and fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer. Prima facie fraudulent ITC of about Rs 140 crore has been passed on using invoices involving an amount of Rs 1,040 crore.
The modus operandi of the accused, inter alia, involved obtaining GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Tilak Bazar, Delhi. On preliminary scrutiny, it appears that there is no nexus between inward and outward supplies of the errant firms. Further, the said fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the Exchequer, according to a PIB release.
Therefore, the accused has committed offences under the provisions of Section 132(1)(a), (b) and (c) of the CGST Act 2017, which are cognisable and non-bailable under Section 132(5) being punishable under Section 132(1)(i) of the said Act. The accused was arrested on November 25, 2019, and was remanded to judicial custody for 14 days on November 26 by the CMM, Patiala House Courts, New Delhi. Investigations are underway to identify the key beneficiaries of this racket and to recover GST involved.