Economy

GST department busts 23 firms for fake invoices and fraudulent ITC

The Goods and Services Tax (GST) officers have busted a network of 23 entities involved in creating fake invoices worth Rs.551 crore and passing inadmissible Input Tax Credit (ITC) worth Rs.91 crore.

The Finance Ministry said that the officers of the anti-evasion branch of Central GST Commissionerate, Delhi (West), have unearthed a case of utilisation and passing on inadmissible ITC through fake invoices of about Rs.91 crore.

The firms involved in this network are M/s Akshay Traders, M/s Girdhar Enterprises, M/s Arun Sales, M/s Shree Padmavati Enterprises and 19 other enterprises. These 23 firms were floated to generate invoices to pass on fraudulent ITC without paying actual GST to the government.

These entities deal in various commodities and are involved in generating fake invoices worth Rs.551 crore and passing inadmissible ITC amounting to approximately Rs.91 crore. The modus operandi involved floating of multiple firms with the intent to avail/utilise and passing on of inadmissible credit.

Dinesh Gupta, Shubham Gupta, Vinod Jain and Yogesh Goel were associated with generating fake invoices. All the three accused tendered their voluntary statement admitting their guilt. The three were arrested under Section 132 of the CGST Act on July 10 and remanded to judicial custody. The Finance Ministry said that further investigations are in progress.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

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