Chennai: Two held in multi-crore fake GST invoice scam
One of the arrested individuals is the proprietor of the firm engaged in availing and passing on fake ITC, while the other is his associate, who was actively involved in the issuance of fake GST invoices.
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CHENNAI: CGST Chennai North Commissionerate have arrested two persons involved in this large-scale GST (Goods and Services Tax) evasion racket in which a firm had fraudulently passed on Input Tax Credit (ITC) worth approximately Rs 10.64 crore on bogus invoices valued at about Rs 59 crore.
One of the arrested individuals is the proprietor of the firm engaged in availing and passing on fake ITC, while the other is his associate, who was actively involved in the issuance of fake GST invoices.
Investigations by the anti-evasion wing of the CGST Chennai North Commissionerate revealed that the firm had fraudulently availed ITC of Rs 10.38 crore and passed on ITC of Rs 10.64 crore without any actual supply or receipt of goods. The fraudulent transactions were carried out through bogus invoices amounting to approximately Rs 59 crore, in clear violation of the provisions of the CGST Act, 2017.
Preliminary findings indicate that a network of more than 90 business entities, spread across Chennai, is involved in this tax fraud. Further investigation is under way to identify the beneficiaries and trace the flow of funds. So far, the recovery made in this case is Rs 42 Lakhs.
The arrested persons were produced before a magistrate and remanded in judicial custody.
