GST authorities bust racket of fake invoicing of Rs 7896 Cr, 2 held

The GST authorities have busted a major racket in West Delhi of fake invoicing of Rs.7,896 crore involving fraudulent Input Tax Credit (ITC) of Rs.1,709 crore using a network of 23 shell companies, the Union Finance Ministry said in a statement on Tuesday.

"The officers of Anti Evasion wing of Central Tax, Delhi West Commissionerate have busted a major racket of fake invoicing of Rs.7896 crore involving fraudulent Input Tax Credit (ITC) of Rs.1709 crore, using a network of 23 shell companies, which procured and generated invoices without actual supply of goods and availed as well as passed on ITC," the statement said.

Two persons were arrested on February 29 in connection with the case and remanded to 14 days judicial custody by the Chief Metropolitan Magistrate, Patiala House Court.

The accused persons were evading tax by creating several dummy firms for the purpose of passing on ITC by generating fake invoices.

"These firms issued 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," it added.