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Rs 13-cr GST fraud busted after multi-city raids by UP STF, sales tax dept

They were involved in circular trading and had shown transactions worth Rs 72.7 crore between them, on which they claimed an input tax credit of Rs 13.09 crore at 18% GST, a senior official said

Press Trust of India  |  Noida (UP) 

tax fraud
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The (STF) and the sales tax department have unearthed a Rs 13 crore tax case involving two subsidiaries of a company which carried out the embezzlement by means of bogus invoicing, officials said Saturday.

According to officials, the accused firms, and RoundPay Voice Tech, both registered at the same address in Lucknow, were involved in for

They were involved in circular trading and had shown transactions worth Rs 72.7 crore between them, on which they claimed an input tax credit of Rs 13.09 crore at 18 per cent GST, a said.

"The STF and the sales tax department were jointly entrusted with the responsibility to probe the case, a first of its kind operation in This trading module was studied for 45 days. It was found that their activities were being carried out in Lucknow, Pratapgarh, and also," of Police, STF Noida, Rajkumar Mishra said.

"The firms were identified, their locations physically verified. Over 100 officers were involved in the operation," he said.

Mishra said simultaneous raids were conducted at the locations of the main companies in and their subsidiaries in other towns by five teams comprising personnel of STF field units in Lucknow, and

"When the investigating teams asked the companies for an of the trade done between them, they failed to produce any. The system which was used by these companies for generating the invoice/bills also had no record of this trade," the said.

"The has admitted in writing to the probe agencies about the Rs 13 crore fraud," the DSP said, adding 6 TB (terrabyte) data has been recovered from the firms' servers in and a detailed investigation of it was underway.

"The amount is likely to go up, we are awaiting the details," he said, adding Mishra said no FIR has been lodged as of now neither any arrest made.

First Published: Sun, April 14 2019. 00:10 IST
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