Fake invoicing racket busted in Delhi, two held

The officers of the anti-evasion wing of Central Tax have busted a major racket of fake invoicing of Rs 7,896 crores and arrested two persons in connection with the case.

A press release from the Office of the Commissioner Central Tax, Delhi West read, "The Officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate have busted a major racket of fake invoicing of Rs 7,896 crores involving fraudulent Input Tax Credit (ITC) of Rs 1709 crores, using a network 23 shell companies, which procured and generated invoices without actual supply of goods and availed as well as passed on ITC. Two persons have been arrested on February 29 in this matter."

"The accused persons were evading tax by creating several dummy firms for the purpose of passing on ITC by the generation of 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 ITC towards GST liability," read the press release.

Further, an investigation in the matter is under progress.