CGST anti-evasion branch unearths tax credit racket worth Rs 1,278 crore

The modus operandi of the fraudulent taxpayers included bogus invoice bills/bills creation without actual movement of goods
The primary beneficiary of the racket is a firm identified as Maya Impex(REUTERS File)
The primary beneficiary of the racket is a firm identified as Maya Impex(REUTERS File)
Published on Oct 30, 2020 10:58 AM IST
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Hindustan Times, New Delhi | ByHT Correspondent | Edited by Zara Khan

The Anti-Evasion Branch of Central Goods and Service Tax (CGST), Delhi, has busted a major racket that generated huge inadmissible input tax credit (ITC) through fake billing to the tune of Rs 1,278 crore, the department said in a statement on Thursday evening.

“The well-established syndicate was being operated by floating seven different fake firms with the intent of passing of inadmissible credit to the tune of Rs 137 crore,” the statement by commissioner, CGST Delhi, Prem Verma said.

The teams of Anti-Evasion Branch conducted searches at over nine places in Delhi and Haryana to identify the taxpayers who were defrauding the government of its legitimate taxes.

Also Read: Government to launch a mobile phone app for taxpayers to access income tax services

The modus operandi, the statement said, of the fraudulent taxpayers included bogus invoice bills/bills creation without actual movement of goods. The sleuths found that all e-way bills generated to transport the goods were fake.

The CGST commissioner’s statement said that the mastermind of whole racket is one Ashish Agarwal, who has been arrested on Thursday. He was on the run for the past 60 days.

The primary beneficiary of the racket is a firm identified as Maya Impex, registered in Ashish Agarwal’s mother’s name.

The department said that Agarwal was issuing fake bills for the sale of milk, ghee etc.

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Monday, November 29, 2021