CGST Delhi detects fraud worth over Rs 12 cr, 1 held

The CGST Delhi North Commissionerate has arrested one person who received fake/goods-less invoices valued at Rs 71.22 crore involving fraudulent input tax credit (ITC) of Rs 12.82 crore from 30 bogus and fake firms.

The modus operandi in this fraud involved creation of various fake firms in the name of the employees of the operator of fake firms and other persons. Fake e-way bills were generated for several vehicle numbers. Bogus invoices were received by the accused from the operator of fake firms for the purpose of availment of fraudulent input tax credit.

Payments were made to the operator of these bogus/fake firms through banks and the same were received back in cash by the accused after deducting the commission (up to 50 per cent of the tax value involved in the fake/goods-less invoices), a government statement said.

Simultaneously, the accused used to procure non-GST paid goods from small unregistered manufactures/traders without paying the GST and used to pass on the fraudulently availed ITC to his buyer, the statement added.

The accused has been booked under Section 69(1) of the CGST Act, 2017, and was produced before the Chief Metropolitan Magistrate, Patiala House Courts, where he was sent to judicial custody till March 21.

Further investigation in the case is in progress.