In the ongoing campaign against fake/bogus invoices and resultant availment of inadmissible ITC, the officers of CGST Ghaziabad Commissionerate conducted searches on 26.02.202 I at the Principal Place of Business of M/s Kumar Sales(engaged in trading of goods covered mainly under I ISN 2401, Tobbaco products) and residential premises of Sh Rakesh Sharma, Proprietor of M/s Kumar Sales. Statement of Sh Rakesh Shama, Proprietor of M/s Kumar Sales was recorded on the same day.
This led to unearthing of a GST fraud involving taxable value of Rs 9$ Crum (approximately) and availment of fake Input Tax Credit (ITC) of Rs. 37.14 crores(approximately) from more than 25 limn. Further investigations are still underway and the quantum of fraud and the number of firms involved arc likely to go up.
The modus operandi inter alia involved creating of fake firms and generating of fake/bogus invoices through them, and passing of inadmissible Input Tax Credit on the strength of such fake/bogus invoices, without actual supply of goods.
Subsequent to this Shri Rakesh Sharma, Proprietor of the firm mentioned above, who was allegedly involved in issuance of fake/bogus invoices and passing on of fraudulent ITC and availment of fraudulent ITC from bogus firm, was arrested on 26.02.2021 under Section 132 (I) (i) of the CGST Act, 2017 and was produced before the court of Special OM, Meerut who ordered for their judicial custody.