Cracking Down on GST Evasion: Pune's Fake Invoice Racket Busted
A fake invoice and ITC trading racket was busted in Pune by the CGST Commissionerate, with two arrests made and Rs 3.25 crores recovered so far.
GstCgst CommissionerateFake InvoiceItc TradingTax EvasionPuneReal Estate PuneAug 06, 2024
Fake invoices were being issued by various fake/bogus firms who were availing, passing illicit Input Tax Credit (ITC). These firms, which existed only on paper, were run by a syndicate. Two residents of Pune were revealed to be the masterminds of the syndicate.
The chain also includes government contractors who received fake ITC through fraudulent invoices without actual supply of goods and services.
According to officials, an investigation into the matter has revealed that formal and informal banking channels have been used by the syndicate in collusion with government contractors involved in fake invoice trading.
Rs 20 crores of ITC has been generated and availed fraudulently by the racket, out of which Rs 3.25 crores has been recovered till now.
The Central Goods and Services Tax (CGST) Commissionerate is a part of the Indian government's efforts to crack down on GST evasion. The commissionerate is responsible for enforcing the GST laws and preventing tax evasion.
The arrested individuals have been booked under the GST Act and the Indian Penal Code (IPC).Meanwhile, in a separate case, the Mumbai airport customs seized 10.50 kg gold worth Rs 6.64 crore in different cases.
The customs department said that five Indian nationals, travelling from Jeddah and Dubai, were intercepted and found carrying 24KT gold dust in wax having total net weight of 5,800 grams.
Four foreign nationals, travelling from Addis Ababa and Nairobi, were also intercepted and found carrying 1363.00 grams gold concealed in the right-side pocket of the burkha and on the body of passenger.
In another case, five Indian nationals travelling from Dubai, Bangkok, Colombo, and Sharjah were intercepted and found carrying 1785.00 grams gold concealed in inside the wheels of the trolley suitcase, on the body and in body.
A separate case also revealed 24KT gold dust in wax (02 Pouches) having net weight of 1550.00 grams valued at Rs 98,78,275 was found concealed under the seat of bus ferrying passengers from Remote to Airport building.
Frequently Asked Questions
What is the Central Goods and Services Tax (CGST) Commissionerate?
The Central Goods and Services Tax (CGST) Commissionerate is a part of the Indian government's efforts to crack down on GST evasion. The commissionerate is responsible for enforcing the GST laws and preventing tax evasion.
What is Input Tax Credit (ITC)?
Input Tax Credit (ITC) is a mechanism under the GST regime that allows businesses to claim credit for the taxes paid on their inputs (goods and services) and set it off against their output tax liability.
How much ITC has been generated and availed fraudulently by the racket?
Rs 20 crores of ITC has been generated and availed fraudulently by the racket, out of which Rs 3.25 crores has been recovered till now.
What is the role of government contractors in the fake invoice racket?
Government contractors received fake ITC through fraudulent invoices without actual supply of goods and services, according to officials.
How much gold was seized by the Mumbai airport customs?
The Mumbai airport customs seized 10.50 kg gold worth Rs 6.64 crore in different cases.
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