Delhi Commissionerate busts fake GST invoice racket
The accused and their associates were found to be operating 19 fake firms that were created to facilitate fraudulent Input Tax Credit
August 02, 2019
Central GST Delhi North Commissionerate has busted a racket of issuance of fake invoices without actual supply of goods and services on Friday. Two individuals — Asrar Akhtar and Vikas Singh — have been arrested in this matter and remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), New Delhi, at Patiala House Courts.
Accused and associates were operating 19 fake firms
The accused and their associates were found to be operating 19 fake firms that were created to facilitate fraudulent Input Tax Credit (ITC), thus defrauding the exchequer. Prima facie, fraudulent ITC of about Rs 25 crore has been detected to have been passed on using invoices involving an amount of Rs 137 crores.
The modus operandi
“The modus operandi of these individuals and their associates Sabban Ahmed and Arif, inter alia, involved issuance of fake invoices of firms registered across Delhi NCR from a premise in Azadpur, Delhi,” an official statement said. Voluminous incriminating documents such as fake invoices, diaries, letterheads, rubber stamps of fake firms, cheque books, transporter’s consignment notes, as well as electronic devices have been recovered. Investigations are underway to identify other individuals and firms involved in this racket, the statement said.
The accused have committed offences under the provisions of Section 132 (1) (b) of the CGST Act 2017, which are cognisable and non-bailable under Section 132 (5) and punishable under Section 132 (1) (i) of the said Act.