Gujarat | Fake GST Invoices Racket worth Rs 32 Crores Busted
Officers of the Preventive Wing of Central Goods and Services Tax (CGST) Ahmedabad, South Commissionerate have busted a scam, where a racketeer had issued fake GST invoices and passed on the credit of inputs fraudulently to the extent of Rs. 32 crores
Officers of the Preventive Wing of Central Goods and Services Tax (CGST) Ahmedabad, South Commissionerate have busted a scam, where a racketeer had issued fake GST invoices and passed on the credit of inputs fraudulently to the extent of Rs. 32 crores. The CGST Ahmedabad-South Commissionerate officials in the matter arrested a 38-year old city based trader for issuing fake invoices valued at Rs 175 crore thereby passing on input credit to the tune of Rs 32 crore fraudulently.
As per Preventive Wing officials, the arrest was made after incriminating records and evidence were unearthed in searches conducted at many places in and around Ahmedabad. The Ahmedabad based trader named Samir Hussain Mithawala was arrested in the matter and produced before ACJM court, who remanded the accused to judicial custody. The accused believed to have floated 20 bogus firms using names of various people and their bank accounts.
Mithawala’s had exploited the liberal and trade friendly measures announced in the initial phase of GST implementation, wherein the credit matching provisions were kept in abeyance. After obtaining online registrations, the non-existence firms were used to generate invoices, without transporting or supply of goods and input credit was passed on merely on paper.
Further follow ups shall bring all those firms to the books who availed fraudulent credit without receiving any goods. Initial GST period of total liberty for ease of the business has been exploited for personal gain. Now, the GST has attained certain maturity and in preventive and audit checks and also in submitting annual returns of GST such fake firms are bound to be busted.