GST Fraud: Officers unearth pretend invoicing racket involving Rs 38.5 crore tax evasion | Economy News


New Delhi: GST officers have unearthed a racket of 54 bogus companies concerned in pretend invoicing of Rs 611 crore involving tax evasion of Rs 38.5 crore, the finance ministry mentioned on Thursday.

Officers of Delhi South CGST Commissionerate performed searches and inspections unfold throughout Delhi, unearthing a cartel working 54 bogus companies registered in Delhi-NCR area that have been engaged in pretend invoicing and round buying and selling.

Incriminating paperwork akin to rubber stamps and letter heads of varied companies, cell phones, laptops and many others have been seized from the search premises.

“Preliminary enquiry conducted so far into these transactions has revealed fake invoicing of around Rs. 611 crores and tax evasion of over Rs. 38.5 crores. The members of cartel in their confessional statements have accepted their roles in managing these bogus firms,” ​​the ministry mentioned in a press release.

Three key individuals of the cartel, specifically Ankit Gupta, the mastermind managing these bogus companies and two of his accomplices Rabiendra Singh and Rajendra Singh, have been arrested on February 23 and remanded to 14 days’ judicial custody.

In a separate assertion, the ministry mentioned the Central Goods and Services Tax (CGST) Commissionerate, Faridabad, of Panchkula CGST Zone, on February 23 arrested two individuals for working a pretend billing racket, involving 5 dummy companies, for issuance of faux invoices of over Rs 200 crore with out precise provide of products and availing and passing fraudulent Input Tax Credit (ITC) amounting to Rs 31.85 crore.

As per GST regulation, issuance of an bill or invoice with out provide of products or providers and wrongful availment or utilization of Input Tax Credit is a cognizable and non-bailable offense if the quantity is over Rs 5 crore. Also Read: Gold Price Today, Feb 24: Russia-Ukraine struggle boosts gold value to Rs 52,500; highest in 2022

“Both the proprietors of the said firms have accepted that they have availed and passed on fraudulent ITC of Rs. 31.85 crore, without actual supply of goods to inter-state recipients and have accepted the total GST liability of Rs. 31.85 crore during initial investigation. . The quantum may increase in future,” the assertion added. Also Read: iPhone 13 Price Cut: Amazon promoting smartphone at Rs 11,000 low cost, proper time to purchase?

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