CGST Officials Uncovers Fake ITC Racket of Rs.169.58 Crores

In an effort to combat tax evasion and fraud, the GST officials are putting constant force into investigating and uncovering such fake rackets of using ITC and fake invoices generation and frauds related to GST in any other way.

Fighting against the menace of fake ITC, the officers of CGST Vadodara-I Commissionerate, utilized data analytics to uncover a fake invoicing racket.

The investigation against three suspect firms found that they had availed and passed fake input tax credit to the extent of Rs. 169.58 crores on the basis of invoices received from a non-existent entity without actual receipt of goods.

Shri Sanjay Kumar Aggarwal, the Chairman of CBDT, has appreciated the work of the team for unearthing the fraud.

In a similar case, the CGST Belagavi Commissionerate discovered a fake invoicing racket managed by a tax professional through his own firm and managing accounts for other firms. The tax professional admits to generating fake invoices for Rs.132 crore and passing fake ITC worth Rs.23.82 crore without underlying supplies.