CGST unearths fake invoicing racket of Rs 611 crore

Central Goods and Services Tax, CGST Commissionerate, Delhi has unearthed fake invoicing racket of Rs 611 crore involving tax evasion of over Rs 38 crore. Finance Ministry said the officers of Delhi South CGST Commissionerate came to know about certain bogus firms created solely for the purpose of generating fake invoices. Searches and inspections were conducted across Delhi, unearthing a cartel running 54 such bogus firms registered in Delhi -NCR region that were engaged in fake invoicing and circular trading. The Ministry said incriminating documents such as rubber stamps and letterheads of various firms, mobile phones and laptops have been seized from the search premises.

Three key persons of the cartel, namely Ankit Gupta, the mastermind managing these bogus firms and two of his accomplices, Rabiendra Singh and Rajendra Singh, were arrested on February 23 and remanded 14 days' judicial custody.  In a separate incident,Central Goods and Services Tax (CGST) Commissionerate, Faridabad, of Panchkula CGST Zone, on February 23 arrested two persons for running a fake billing racket, involving five dummy firms, for issuance of fake invoices of over Rs 200 crore without actual supply of goods and availing and passing fraudulent Input Tax Credit (ITC) amounting to Rs 31.85 crore.