Fake Invoice racket busted by GST Commissionerate

A racket of procuring and supplying fake GST invoices by five firms without actual supply of goods has been busted with the arrest of three people, officials said May 22.

The Medchal Central GST Commissionerate here also found that these firms allegedly availed ineligible Input Tax Credit (ITC) to the tune of Rs 22.64 crore.

Based on information received from Kolkata and investigation, the Commissionerate registered cases against these firms which have been allegedly indulging in procuring and supplying fake GST invoices without actual supply of goods mentioned in the invoices.

These firms were also allegedly passing on fraudulent Input Tax Credit (ITC) since July 2017, Principal Commissioner M Srinivas said in a release. Some of them were also using such fraudulent ITC to offset their GST liability on their manufactured goods, thereby evading the tax payable to the government.

The value of the goods involved is Rs 131 crore and the ineligible ITC availed is Rs 22.64 crore, the senior official said.

During the searches at different premises on May 15 and May 17, unaccounted cash of Rs 20 lakh and USD 4,150 and several documents were seized and the details shared with Income Tax Department, he said.

During initial investigation it was revealed that the details of the vehicles indicated to carry huge volume of goods as mentioned in the 'E-way' bills were fictitious and some vehicles were found to be passenger vehicles/scooters/tractors, which were declared as carrying goods, Srinivas said.

Three key persons of these firms involved in the offence have been arrested and remanded in 14 days judicial custody, he added.