Industry And Cluster | News & Insights

GST Officials Bust Rs. 7k-cr ITC Racket.

Published: March 7, 2020

GST officers in Delhi have busted a racket of fake invoicing worth Rs. 7,896 crore using a network of 23 shell firms. The officers of anti-evasion wing of Central Tax, Delhi West Commissionerate busted the racket involving fraudulent Input Tax Credit (ITC) of Rs. 1,709 crore, using a network of 23 shell companies, the finance ministry said.

These firms generated invoices without the actual supply of goods and availed as well as passed on input tax credit. Two persons were arrested on February 29, and were remanded to 14 days judicial custody.

The accused persons were evading tax by creating several dummy firms for the purpose of passing on input tax credit via 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 input tax credit towards GST liability,” the statement added.

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