Fake invoice, ITC trading racket busted

Officers of Pune CGST Commissionerate booked a case of fake invoice issuance by bogus firms for ineligible tax credit. Two masterminds arrested, ₹3.25 crore recovered.

Acting on intelligence, officers of anti-evasion, Pune-II, Central Goods and Services Tax (CGST) Commissionerate, Pune Zone has booked a case of issuance of fake invoices by various bogus firms to avail, pass ineligible input tax credit (ITC), officials said on Tuesday.

The probe reveals that formal and informal banking channels have been used by the syndicate in collusion with government contractors involved in fake invoice trading. (REPRESENTATIVE PHOTO)

“These firms that existed only on paper was run by a syndicate. The chain also included government contractors who received fake ITC through fraudulent invoices without actual supply of goods and services,” a Press Information Bureau (PIB) release stated. Of the ₹20 crore collected fraudulently by the accused, the office has recovered ₹3.25 crore.

Two residents of Pune, the masterminds of this syndicate, have been arrested. The probe reveals that formal and informal banking channels have been used by the syndicate in collusion with government contractors involved in fake invoice trading.