Fake invoicing racket worth Rs 7,896 cr busted; accused use 23 shell firms

The anti-evasion wing of Central Tax, Delhi West Commissionerate, cracked down on a racket of fake invoicing to the tune of Rs 7,896 crore, and involving fraudulent input tax credit (ITC) of Rs 1,709 crore. This was done by a network of 23 shell companies. Two people were arrested for the same on February 29.

These 23 shell companies were used to procure and generate invoices without supply of goods and passed on input tax credit. The arrested persons were involved in tax evasion by creating dummy firms to pass on ITC. Banking transactions were used to make ITCs genuine.