GST fake bill trading racket busted

Officials of the Directorate General of GST Intelligence, Coimbatore Zonal unit, have arrested one person for issuing fake bills with a taxable value of ₹ 55 crore.

According to a release, the officials conducted simultaneous searches on the residential and business premises in Erode, Namakkal, and Coimbatore of the key person on February 25. He had multiple fictitious registrations in Erode, Namakkal, and Coimbatore to generate and pass on fraudulent input credit. All the firms were dealing with TMT bars and rods and MS scrap in and around these three places. The invoices were issued without supply of goods with a taxable value of approximately ₹ 55 crore and passed on fraudulent input tax credit of around ₹ 9.9 crore to various entities.

The firms were owned and controlled by the key person and he had four separate GST registrations with PAN numbers of his relatives and friends. Invoices were generated and issued from these without supply of goods. The invoices were raised for two of his companies in Erode that would take fraudulent credit and use it to settle off the GST liability. This led to revenue loss to the government.

The officials recovered during the searches printed bill books of the fake firms, cheque books and cheque leaves of the bank accounts of the fictitious companies. The offender admitted to issuing fake bills through multiple fictitious registrations, the press release said. Further investigations are on.

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Printable version | Apr 16, 2021 8:36:25 PM |

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