Major Racket of Fake Invoicing of Rs 7,896 Cr. Busted, 2 accused held

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New Delhi : The officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate, have busted a major racket of fake invoicing of Rs 7,896 crore involving fraudulent Input Tax Credit (ITC) of Rs 1,709 crore using a network of 23 shell companies, which procured and generated invoices without actual supply of goods and availed as well as passed on ITC. Two persons were arrested on February 29, 2020, in this connection.

The accused persons were evading tax by creating several dummy firms for the purpose of passing on ITC by generation of fake invoices. They also used banking transactions to make ITC appear genuine. These firms issued the fake invoices to buyers, who availed fraudulent input tax credit without actually receiving any goods and defrauded the exchequer by way of availing ineligible ITC towards GST liability. They were caught in their hideout with several mobile phones, computers, and incriminating documents, according to a PIB release.

The accused have committed offences under Section 132(1)(b) and Section 132(1)(c) of CGST Act, 2017, which are cognisable and non-bailable offences as per the provisions of Section 132 (5) and punishable under Clause (i) of Sub section (1) of Section 132 of the CGST Act, 2017. Accordingly, the accused were arrested on February 29, 2020, under Section 69(1) of the CGST Act, 2017, and remanded to fourteen days judicial custody by the Chief Metropolitan Magistrate, Patiala House Court. Further investigation into the matter is under progress.