The Noida Police has communicated that they have issued Non-bailable warrants against ten individuals who were involved in a Goods and Services Tax (GST) scam amounting to Rs. 15,000 crores. Allegedly, these individuals orchestrated a fraud against the government through the use of counterfeit Input Tax Credit (ITC) documents. The police are underway to apprehend the mastermind.
The entire group of ten individuals originated from Delhi and Haryana. It is suspected that these accused individuals conducted their activities through a series of fake companies, utilizing fabricated documents to assert input tax credit for transactions that had not actually occurred.
The method employed by these scammers involved setting up a company and subsequently furnishing them with counterfeit invoices for transactions that never occurred. These forged invoices were then utilized to generate documents for ITC, which were presented to the government as refund claims. Using this approach, the fraudsters managed to deceive the government out of Rs. 15,000 crore.
This is not a sole incident. Recently, the Directorate General of GST Intelligence (DGGI) has detected 8000 fake GST Input Tax Credit (ITC) claim cases with the help of GSTR 3B and GSTR 2A. The DGGI official has informed that the notices will be sent to the concerned entities. The department already issued notices to 5000 companies.
Both on a large and small scale, individuals are involved in fabricating documents and seeking refunds for transactions that never actually took place. The Revenue Secretary Sanjay Malhotra has stated that in the official meeting of the officers of GST, 70,000 suspected firms have been identified and able to verify about 60,000 of them. And 17,000 were found to be bogus in which the action has been taken. And roughly about 17,000 crores of GST have been evaded by these firms. The various departments of the government are behind the fraudsters.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
