The GST Department of the Delhi government on Saturday unearthed a ₹347 crore fake GST billing scam spread across 11 firms. One person, believed to be among the kingpins, has been arrested, the authorities said.
The firms were allegedly engaged in circular trading and issued fake bills to claim fraudulent Input Tax Credit and evade taxes. The firms were allegedly issuing fake or inflated invoices on the supply of goods without actually supplying goods.
“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 Delhi GST Department.
“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, 1st January 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 the tax laws.
These firms had issued inflated or fake invoices of ₹347 crore, which led to a total tax evasion of close to ₹40 crore, the statement said.
