2 Fake ITC

Fake ITC

Penalty on Issuance of Fake Invoice and Wrong ITC Claim

Goods and Services Tax - This article describes the Fake GST Invoice and measures to address them. Also it helps to understand the applicability of GST Penalty on Fake Invoicing or ITC claim. It will also helpful to understand penalty imposition of Penalty u/s 73(5) and 74(5) or Section 122 of GST Act 2017. Introduction : In recent years, many […]...

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Fake Invoicing Under GST- An Overview

Goods and Services Tax - The GST Act came into effect on 1st July 2017 with the objective to curb tax evasion, seamless flow of credit and eliminating the cascading effect of taxes. But if we look today, we find that the most litigative issue is ITC. GST authorities noticed that some of the registered persons are found to be […]...

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Fake invoices under GST- Demand and penalty provisions

Goods and Services Tax - Article contains view of the author relating to CBIC circular in respect of transactions involving fake invoices and applicability of demand and penalty provisions under the Central Goods and Services Tax Act, 2017 Issue No 1- In case where a registered person “A” has issued tax invoice to another registered person “B” without any...

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Clarification on demand & penalty on FAKE INVOICES under GST

Goods and Services Tax - Detailed Clarification on various issues relating to applicability of demand and penalty on FAKE INVOICES under the CGST Act, 2017 Recently CBIC has given Circular No.171/03/2022-GST dated 06-July-2022, with regard to applicability of demand and penalty provisions under the CGST Act,2017, in respect of transactions involving FAKE INVOICES...

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Fake Invoices and Fraudulent Input Tax Credit under GST

Goods and Services Tax - Introduction In the modern world, there are many incidents of fraud cases dealing with fake GST invoicing where people fraudulently claim Input Tax Credit (ITC) and unethical refund claimants. This is a very serious issue which might not have an impact on the financial economy of the country for a short period of time but […]...

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GST fraud worth ₹824 cr by insurance companies detected

Goods and Services Tax - Directorate General of GST Intelligence, Mumbai Zonal Unit detects GST fraud worth ₹824 cr by insurance companies Directorate General of GST Intelligence, Mumbai Zonal Unit initiated investigations against sixteen insurance companies on the issue of availment of ineligible input tax credit. During the course of investigations, it has co...

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Fake ITC on bogus invoices – Navi Mumbai CGST arrests one person

Goods and Services Tax - Navi Mumbai CGST arrests one person for availing and passing on fake ITC on bogus invoices amounting to Rs 181.67 Crores On 7th September 2022, the Director handling the business activities of M/s Robosteel Trading Pvt. Ltd. (GSTIN:AACCR8701J1Z8) has been arrested by CGST, Navi Mumbai on the charges of availing/utilizing/passing on fake ...

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CGST Mumbai busts Rs. 142 Crore fake GST invoice racket

Goods and Services Tax - CGST Mumbai South Commissionerate busts Rs. 142 Crore fake GST invoice racket One person arrested in the case Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to pass on fake GST Input Tax Credit (ITC) of Rs. 27.80 crore on invoices of Rs 142 Crore, and have […]...

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Govt to investigate fraudulent misuse of PAN for GST registration

Goods and Services Tax - Recent reports in a section of the media have highlighted a case of Sh. Girish Yadav, a resident of Khagaria, Bihar having received a letter from the jurisdictional GST authorities for recovery of GST amounting to Rs. 37.5 lakh alongwith applicable interest and penalty. Examination of the case by CGST authorities reveals that the letter [...

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CGST Navi Mumbai arrests one for availing & passing on fake ITC

Goods and Services Tax - CGST Navi Mumbai arrests one person for availing and passing on fake ITC on bogus invoices On 18th August 2022, the Proprietor/mastermind handling the business activities of M/s Mass Steel Traders (GSTIN:27BONPS7020E1ZS), M/s S.K. Enterprises (GSTIN:27DBKPK2919Q1Z1), M/s M K Traders (GSTIN:27AOBPK2775F1ZZ) & M/s. Niyaz Enterprises (G...

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Bail Condition to deposit INR 70 Lakhs for alleged wrongful availment of ITC is not sustainable

Subhash Chouhan Vs Union of India (Supreme Court of India) - SC set aside the condition imposed by Chhattisgarh HC, of depositing INR 70 Lakh for grant of bail in a matter of wrongful availment of ITC...

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Availment & passing of fake/ineligible ITC – HC Grants bail to accused

Gaurav Kakkar Vs Directorate General of GST Intelligence (Rajasthan High court) - Prosecution case against petitioner is that he created fake firms for availment and passing of fake/ ineligible Input Tax Credit (ITC) to facilitate existing beneficiary firms....

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GST ITC refund Scam: HC grants Bail to Gurugram CA

Gaurav Dhir Vs Central Goods and Services Tax (Punjab and Haryana High Court) - In the present case, he had been paid professional fee for uploading of the refund of Input Tax Credit. The petitioner and his co-accused Sunil Mahalawat were colleagues, as such the UDIN was borrowed by the petitioner from him for uploading and issuance of the CA certificate....

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Fake GST Bill: Anticipatory Bail denied for non-Co-operation during Investigation

Rajesh Kumar Dudani Vs State of Uttarakhand (Uttarakhand High Court) - Rajesh Kumar Dudani Vs State of Uttarakhand (Uttarakhand High Court) It is the case of generating fake and forged invoices so as to claim ITC. In their objections, the respondent no.2 has given categorical details of such dubious transactions and has also submitted as to how in one day, the money ha...

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HC Grants Bail as GST evasion not quantified & GST officer not lodged any FIR/Complaint

Pankajbhai Chaturbhai Rajput Vs State of Gujarat (Gujarat High Court) - Considering the fact that the prosecution could not point out as to how much amount is misappropriated under the Input Tax Credit and that material part of investigation is not done, more particularly, when the GST Officer has not lodged any complaint or FIR against the applicant for any misappropri...

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Clarification on GST Refund on deemed export, GST on perquisites etc

Circular No. 172/04/2022-GST - (06/07/2022) - CBIC clarifies on refund claimed by the recipients of supplies regarded as deemed export, interpretation of section 17(5) of the CGST Act, perquisites provided by employer to the employees as per contractual agreement; and utilisation of the amounts available in the electronic credit ledger and the ...

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GST Demand & penalty in respect of transactions involving fake invoices

Circular No. 171/03/2022-GST - (06/07/2022) - Clarification on issues relating to applicability of demand & penalty provisions under CGST Act, 2017 in respect of transactions involving fake invoices...

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Circular on reversal of ineligible/blocked ITC in Form GSTR-3B & GSTR-1

Circular No 170/02/2022-GST - (06/07/2022) - Furnishing of information regarding inter-State supplies made to unregistered persons, composition taxable persons and UIN holders and Furnishing of information regarding ITC availed, reversal thereof and ineligible ITC in Table 4 of GSTR-3B...

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TNGST Act, 2017- Identification and prevention of bill traders

Circular No: 10/2022 (PP2/GST-15/20/2022) - (07/06/2022) - Our experience shows that the bill traders after getting registrations, issue invoices without supply of goods or services for huge amount within a short span of time....

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CGST Mumbai Zone smashed fake GST Input Tax Credit racket

F.No. V/PI/RGD/GR-VI/12-106/ZAID/21-22 Panvel - (05/03/2022) - CGST Commissionerate, Raigad of CGST Mumbai Zone has smashed a racket of fake GST Input Tax Credit (ITC) involving fake invoices amounting to Rs. 70 Crore involving ITC of Rs. 13 Crore and has arrested the proprietor of a Kalamboli based firm, M/s. Zaid Enterprises....

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Recent Posts in "Fake ITC"

Bail Condition to deposit INR 70 Lakhs for alleged wrongful availment of ITC is not sustainable

Subhash Chouhan Vs Union of India (Supreme Court of India)

SC set aside the condition imposed by Chhattisgarh HC, of depositing INR 70 Lakh for grant of bail in a matter of wrongful availment of ITC...

Read More

Availment & passing of fake/ineligible ITC – HC Grants bail to accused

Gaurav Kakkar Vs Directorate General of GST Intelligence (Rajasthan High court)

Prosecution case against petitioner is that he created fake firms for availment and passing of fake/ ineligible Input Tax Credit (ITC) to facilitate existing beneficiary firms....

Read More

Penalty on Issuance of Fake Invoice and Wrong ITC Claim

This article describes the Fake GST Invoice and measures to address them. Also it helps to understand the applicability of GST Penalty on Fake Invoicing or ITC claim. It will also helpful to understand penalty imposition of Penalty u/s 73(5) and 74(5) or Section 122 of GST Act 2017. Introduction : In recent years, many […]...

Read More

Fake Invoicing Under GST- An Overview

The GST Act came into effect on 1st July 2017 with the objective to curb tax evasion, seamless flow of credit and eliminating the cascading effect of taxes. But if we look today, we find that the most litigative issue is ITC. GST authorities noticed that some of the registered persons are found to be […]...

Read More

GST ITC refund Scam: HC grants Bail to Gurugram CA

Gaurav Dhir Vs Central Goods and Services Tax (Punjab and Haryana High Court)

In the present case, he had been paid professional fee for uploading of the refund of Input Tax Credit. The petitioner and his co-accused Sunil Mahalawat were colleagues, as such the UDIN was borrowed by the petitioner from him for uploading and issuance of the CA certificate....

Read More

Fake GST Bill: Anticipatory Bail denied for non-Co-operation during Investigation

Rajesh Kumar Dudani Vs State of Uttarakhand (Uttarakhand High Court)

Rajesh Kumar Dudani Vs State of Uttarakhand (Uttarakhand High Court) It is the case of generating fake and forged invoices so as to claim ITC. In their objections, the respondent no.2 has given categorical details of such dubious transactions and has also submitted as to how in one day, the money has routed in different […]...

Read More

GST fraud worth ₹824 cr by insurance companies detected

Directorate General of GST Intelligence, Mumbai Zonal Unit detects GST fraud worth ₹824 cr by insurance companies Directorate General of GST Intelligence, Mumbai Zonal Unit initiated investigations against sixteen insurance companies on the issue of availment of ineligible input tax credit. During the course of investigations, it has co...

Read More

HC Grants Bail as GST evasion not quantified & GST officer not lodged any FIR/Complaint

Pankajbhai Chaturbhai Rajput Vs State of Gujarat (Gujarat High Court)

Considering the fact that the prosecution could not point out as to how much amount is misappropriated under the Input Tax Credit and that material part of investigation is not done, more particularly, when the GST Officer has not lodged any complaint or FIR against the applicant for any misappropriation of the Government funds or State E...

Read More

Fake ITC on bogus invoices – Navi Mumbai CGST arrests one person

Navi Mumbai CGST arrests one person for availing and passing on fake ITC on bogus invoices amounting to Rs 181.67 Crores On 7th September 2022, the Director handling the business activities of M/s Robosteel Trading Pvt. Ltd. (GSTIN:AACCR8701J1Z8) has been arrested by CGST, Navi Mumbai on the charges of availing/utilizing/passing on fake ...

Read More

CGST Mumbai busts Rs. 142 Crore fake GST invoice racket

CGST Mumbai South Commissionerate busts Rs. 142 Crore fake GST invoice racket One person arrested in the case Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to pass on fake GST Input Tax Credit (ITC) of Rs. 27.80 crore on invoices of Rs 142 Crore, and have […]...

Read More

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