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GST wing uncovers over Rs 10,000 crore of bogus invoicing

Updated : December 28, 2018 17:22:31 IST

The anti-evasion wing of Goods and Services Tax (GST) has detected more than Rs 10,000 crore of bogus invoices across India, sources privy to the developments told CNBC-TV18.

The fraudulent companies were engaged in trading of fake tax invoices for availing input tax credit. According to people familiar with the matter, maximum cases were reported from New Delhi and Chennai.

This week, the Directorate General of GST Intelligence (DGGI) had busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 220 crore to avail input-tax credit.

According to the DGGI, searches were conducted at several official as well as residential premises last Thursday in Chennai and Coimbatore in Tamil Nadu and busted the racket and arrested two persons.

"Several incriminating documents, including copies of fake invoices, issued on the letterheads of several firms that existed merely on paper, were seized", an official release issued on Sunday by Additional Director General K Balaji Majumdar said.
The modus operandi was that several bogus companies and bank accounts were created using PAN and Aadhaar number of family members and employees, and complex transactions were made without the supply of goods, the release said.
(With inputs from PTI)
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