GST Fraud: Rs.135 Crores forged by creating Fake Bills of Rs.925 Crores; 7 Arrested

The Uttar Pradesh Police discovered a gang on Tuesday (24th September) that committed Goods and Service Tax (GST) fraud in Muzzafarnagar by generating bills in the names of fake firms. In five years, the gang created 48 fake businesses, generated fake bills totalling Rs.925 crores, and stole Rs.135 crores in GST.

The police have arrested seven of the gang’s members, including the mastermind. The accused have been identified as Tasleem, Junaid, Aas Mohammad, Sethi, Asif, Moin, and Azim. According to initial reports, the commission for generating fake bills was handled via hawala.

SSP Abhishek Singh reports that on September 2, a person from the Ratanpuri police station area named Ashwini filed a complaint at the Cyber Crime Police Station, claiming that someone had used his Aadhar and PAN cards to create a fake company that had stolen GST through the creation of fake bills. A case of Rs.248 crore worth of GST theft was registered.

The police later investigated the matter and discovered that fake bills totalling Rs.925 crores were used to swindle Rs.135 crore in GST. Tasleem, the arrested accused, is suspected as the mastermind of the entire plan. However, while the police have arrested seven people in the case, Tasleem’s brother Wahdat, who is also accused, has fled.

The SSP also stated that Tasleem is the gang’s mastermind.

“This gang used to draw in unemployed youngsters to hand over their documents by offering them jobs. Another arrestee, Azim, is suspected of creating fake KYC for the youths so that a bogus company could be formed in their name with a fake GST number. Following that, the gang looked for traders dealing in scrap and garbage across the country who did not have GST numbers and dealt with them,” the police stated.

According to a report, GST was stolen by means of fake invoices issued by fake businesses. Instead of being deposited into the business’s account, the commission for generating GST bills was collected through Hawala. There have been seven arrests in this case. One absconder is being sought by the police. Investigations are still being conducted.