CGST, Vadodara, upon intelligence developed through data analysis, have booked a case  of issuance of fake invoices valued at Rs. 107 Crores without any physical movement of goods, leading to wrongful availment of ITC worth Rs 25.5 crores and passing on of ITC worth Rs 19 crores.

OFFICE OF THE PR, COMMISSIONER
CENTRAL GST & CENTRAL EXCISE, VADODARA-I
Central GST Building, Race Course Circle
Vadodara – 390 007

IV/06-Prev/72/Capital Impex/2018-19/Gr.C

Vadodara, Dated 30.01.2019

PRESS NOTE

Detection of fake Invoice case with wrong availment of Rs. 25.5 Crore ITC against 3 firms

The officers of CGST, Vadodara-I, upon intelligence developed through data analysis, have booked a case against three firms M/s. Capital Impex, M/s Krishna Steel and M/s Millennium Steel, Vadodara, of issuance of fake invoices valued at Rs. 107 Crores without any physical movement of goods, leading to wrongful availment of ITC worth Rs 25.5 crores and passing on of ITC worth Rs 19 crores. These firms existed only on paper and had no physical activity. One individual had floated the said firms. Investigation revealed that the said individual has obtained GST registration of many such firms by securing the identity and other relevant documents from different persons by paying them small amounts of money. He then used these firms for circulation of fake invoices and consequent availment and passing of ITC to various other firms. Bogus sales invoices were issued by him from the said three firms to many firms of Rajkot, Bhavnagar, Jamnagar & Mumbai for passing of fraudulent ITC without any physical/actual movements of Goods.

The dummy proprietors of firms so far and the individual have confessed to above modus in their respective statements. He has been arrested on 30.01 2019 and produced before the Chief Judicial Magistrate, Vadodara.

Further. investigations are ‘underway which may reveal the existence of other fake firms issuing fake invoices without actual movement of goods, in the ease.

(Mallika Mahajan)
Principal Commissioner
CGST & Central Excise,
Vadodara-I

Download Official Press Release on Detection of Bogus Invoices

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