Synopsis
The Central GST Commissionerate in Itanagar has uncovered a fraudulent scheme involving fake invoices worth Rs 658.55 Crores without any goods supplied. Investigations have led to multiple arrests and significant evidence being seized as officials continue to combat GST fraud nationwide.Key Takeaways
- Fraudulent invoices worth Rs 658.55 Crores identified.
- Illegal Input Tax Credit transfer of Rs 99.30 Crores.
- Search operations uncovered significant evidence.
- Two masterminds arrested in Bihar.
- Ongoing investigations into large-scale GST fraud.
Itanagar, Feb 4 (NationPress) The Central GST Commissionerate, Itanagar, has uncovered a fraudulent scheme involving the issuance of counterfeit invoices amounting to Rs 658.55 Crores without any actual supply of goods, officials reported on Tuesday.
According to an official, in an effort to combat fraud in Goods and Services Tax (GST) and improve compliance, the GST divisions, operating under the Central Board of Indirect Tax and Customs (CBIC) of the Union Ministry of Finance, are implementing a concentrated initiative nationwide regarding nonexistent/bogus registrations and the issuance of false invoices devoid of any genuine goods or services.
As a component of this nationwide initiative, the Central GST Commissionerate in Itanagar discovered the scheme involving the issuance of fraudulent invoices valued at Rs 658.55 Crores without any actual supply of goods, the official stated.
The investigation disclosed that M/s Siddhi Vinayak Trade Merchants, a business registered in Arunachal Pradesh, had participated in the illicit transfer of Input Tax Credit (ITC) amounting to Rs 99.30 Crores to fifty-eight firms throughout the nation.
The fraudulent actions encompassed the establishment of a company utilizing forged documents to set up a fictitious entity, the generation of invoices without the supply of goods, and the manipulation of GST returns to unlawfully obtain Input Tax Credit, resulting in a loss of nearly Rs 100 Crores to the government treasury, the official confirmed.
GST officials indicated that as part of the investigation, a search operation was recently carried out in Kolkata, during which substantial evidence was collected, including electronic devices (seven mobile phones and one iPad) that have been sent for forensic examination, along with various documents such as 53 PAN and Aadhar Cards of different individuals, 17 rental agreements, etc., linked to the fraud.
During the search, it was also found that numerous KYC (Know Your Customer) documents of fictitious individuals were in the possession of the suspects, further illustrating the scale of the fraudulent operations.
The search also exposed that the suspects were actively managing and filing fraudulent GST returns from this location. The accused had devised a complex network of fraudulent transactions across the nation, employing forged documents and fake identities to enable the transfer of Input Tax Credit. Given the forgery of KYC documents used to establish the company, the Central GST department lodged an FIR with Itanagar Police (Arunachal Pradesh).
Based on the FIR from the Central GST, two key players in this counterfeit operation -- Ashutosh Kumar Jha and Bipin Kumar Jha -- were arrested by Itanagar Police in Darbhanga, Bihar.
On Monday, the offenders were detained by Central GST, Itanagar under Section 69 of the CGST Act, 2017.
Further investigations are underway, and the department will persist in taking strict action against those implicated in such unlawful activities, the official added.
