Anti Evasion wing of CGST Delhi South Commissionerate headed by Dr Tej Pal Singh has discovered yet another case of fake invoices and GST fraud alongside a novel modus operandi of defrauding the exchequer by exploiting the facility of refunds given for inverted duty structure.
The investigations have unearthed a well-organized racket of creating bogus firms, issuing fake invoices and bogus e-way bills to generate and encash tax credits.
The main culprit was arrested on 26.12.2019 as per the provisions of section 69 of the CGST Act, 2017 and produced before a judicial magistrate on 26° December 2019 and remanded to 10 days of judicial custody. The racketeer had created several firms on the basis of unauthorized access to identity documents of various persons.
The new modus operandi was uncovered by a team of investigators, who worked unceasingly over many weeks to uncover the maze of companies created across India. Incriminating electronic evidence has been recovered from the premises of the accused. Over 120 entities who are involved in the transactions have come to light so far, involving fake invoicing of Rs. 1600 crores and tax evasion of Rs 241 crores.
Further investigations are in progress.