This story is from December 4, 2020

Central GST and Excise bust fake invoice credit racket, trader arrested in Chhattisgarh

Central GST and Excise bust fake invoice credit racket, trader arrested in Chhattisgarh
Representative image.
RAIPUR: Exposing a major racket, central GST and Central Excise have arrested a trader of iron and steel products in Chhattisgarh for wrongly passing input tax credit allegedly by issuing bogus invoices to many firms. This is the third arrest of in connection with the fake invoice credit racket.
GST and central excise joint commissioner Sharawan Kumar Bansal said the trader Narayan Swamy was arrested after it was found that M/s Narayan Steel Bhilai had issued bogus invoices to many firms to wrongly pass input credit of Rs 14.71 crores.
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A press release issued by the joint commissioner said it was found during investigation that the firm had issued bogus invoices valued at Rs 96.44 crores to M/s Om Ispat, who further passed the ineligible ITC to another firm M/s HK enterprises against whom a similar action has been taken in November and arrest has been made.
Central GST and central excise found that M/s Narayan Steel is a non-existent firm which was solely created to pass wrong input tax credit by issuance of bogus bills. Preliminary investigations indicated that there is a racket of dealers dealing with fake input tax credit bills, spreading across many states and many manufacturers are availing such fake input tax credit bills for avoiding payment of GST.
Bansal said in the last three months CGST has come down heavily on the taxpayers involved in the business of issuing fake invoices. The modus operandi involves creation of web of fake firms in the name of confidents such as driver, servants and employees.The bogus bills are further routed through multiple entities in different jurisdiction to colour the transaction as genuine, the release said.
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