The GST Department of the Delhi government on Saturday unearthed an alleged ₹347 crore fake GST billing scam spread across 11 firms and also arrested one person, who is believed to be one of the kingpins, authorities said.
The firms were engaged in circular trading and issuing fake bills to claim fraudulent Input Tax Credit (ITC) to evade taxes.
“This is the first arrest by the Delhi GST Department and we hope that it sends a strong signal to tax evaders,” said Prince Dhawan, Special Commissioner (anti-evasion) of the GST Department.
These firms were issuing fake or inflated invoices about supply of goods, without actual supply of goods to evade taxes.
“The proprietor of Ms. Super Steel India Ltd., Mayank Jain, believed to be one of the kingpins of the scam has been arrested by the department on Saturday, January 1, 2022. He has been remanded to 14 days judicial custody by the judicial magistrate,” an official statement said.
It was also discovered that several of these 11 firms belonged to one person and could have been set-up for the purpose of creating long tax chains to avoid detection under tax laws.
These firms had issued inflated or fake invoices of ₹347 crore and which led to a total tax evasion of close to ₹40 crore, the statement said.
