A racket of fake/bogus firms has been busted by our officers of CGST G.B Nagar , unearthing fake GST invoicing of Rs 55.89 Cr involving fraudulent ITC of Rs 8.83 Cr, 1 person has been arrested.
01 PERSON ARRESTED IN CASE OF ISSUING FAKE INVOICES OF RS. 55.89 CRORES AND PASSING OF INADMISSIBLE ITC OF RS. 8.83 CRORES
On the basis of information shared by the Chief Commissioner Office, CGST & Customs, Meerut Zone. Meerut, the officers of CGST Gautam Buddha Nagar Commissioner conducted a series of searches on 03.02.2021 at principal place of business of M/s G.K. Traders, at the registered place of business of its 05 supplier firms and 02 recipient firms, totalling 08 premises in UP and Delhi. In a series of coordinated searches, incriminating documents were recovered and mobile phones were seized. Subsequently, Statement of Sh. Gaurav Kumar, proprietor of M/s G.K. Traders was recorded on 09.02.2021 and 10.02.2021.
This led to unearthing of GST fraud involving taxable value of Rs. 55.89 Crores and passing of fake ITC worth Rs. 8.83 Crores (approximately) involving multiple recipient firms and availment of inadmissible ITC amounting to Rs. 979.43 lacs (9.79 Crores approx.) on the basis of supply made by firms which were non-existent. Further investigations are still underway and the quantum of fraud and the number of firms involved are likely to go up.
The modus operandi inter alia involved generation of fake invoices without actual supply of goods to pass on huge inadmissible ITC to recipient firms and availment of inadmissible Input Tax Credit passed on by suppliers which were bogus/non-existent.
Subsequently Sh Gaurav Kumar, who was allegedly involved in the availment and passing of fraudulent ITC was made liable for punishment under Section 132 (1)(b), 132 (1)(c) and 132 (1)(i) of the CGST Act, 2017. Accordingly, the accused was arrested on 10.02.2021 under Section 69 of the CGST Act, 2017 and was remanded to judicial custody for fourteen days by order of OM, Meerut on 11.02.2021. Further investigations are underway.