Delhi South CGST unearths fake invoicing racket involving tax evasion of Rs 17 crore, 2 held
Author: BI Bureau
New Delhi: The Central Goods and Service Tax (CGST) Delhi South Commissionerate busts a racket of firms fraudulently claiming Input Tax Credit (ITC) of Rs 17 crore, said the Ministry of Finance on Saturday.
A specific intelligence was developed by the officers of Central Goods and Service Tax (CGST) Delhi South Commissionerate concerning certain bogus firms that were created solely for the purpose of generating goods less invoices and passing on of ineligible input tax credit along the chain.
Inspections were conducted at the registered premises of three bogus firms/company, namely, NexGen Busicorp, XEL Informatics and GW Infotech Pvt Ltd registered in the jurisdiction of CGST Delhi South Commissionerate that were engaged in fake invoicing and circular trading. Incriminating documents were resumed from the premises of the taxpayers.
Preliminary enquiry conducted so far into the transactions of these firms has revealed tax evasion of Rs 17 crore approximately. The proprietor/director in his confessional statements has admitted his role in passing and availing fraudulent ITC without any underlying supply of goods.
The persons behind these bogus firms have defrauded the government exchequer and committed offences specified under Section 132(1)(b) and 132(1)(c) of the CGST Act 2017 which are cognizable and non-bailable.
Two persons, namely, Sanjay Kumar Srivastava and Sunil Gulati have been arrested. The accused were produced before the Duty Metropolitan Magistrate following which they have been remanded to judicial custody for 14 days. Further investigation is in progress. /BI/
