Central GST Delhi North Commissionerate has unearthed a tax racket and arrested one person for allegedly defrauding the government amounting to Rs 140 crore through fraudulent means.
The Central Board of Indirect Taxes and Customs (CBIC) in a release on Tuesday, said that the Central GST Delhi North Commissionerate has unearthed a racket “involving supply of goods-less invoices and invoice-less goods”.
One person has been arrested in the connection and sent to judicial custody for 14 days. 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 crores has been passed on using invoices involving an amount of Rs 1,040 crores,” the release further said.
CBIC further said that 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.