DGGI Nagpur unit busts fake GST invoice network in Delhi-NCR

By: |
March 12, 2021 6:51 PM

In the first fake invoice network, six of these 11 NCR-based entities had made bogus transactions of goods with the Nashik- and Dhule-based entities, while four of them shared common Permanent Account Numbers (PANs) with other entities.

These 10 NCR-based entities had themselves availed fraudulent input tax credit of Rs 315.65 crore and passed on a part of this fraudulent ITC to the Nashik- and Dhule-based entities.These 10 NCR-based entities had themselves availed fraudulent input tax credit of Rs 315.65 crore and passed on a part of this fraudulent ITC to the Nashik- and Dhule-based entities.

As part of the ongoing drive against fake invoices, Directorate General of GST Intelligence’s (DGGI) Nagpur unit conducted multiple searches in Delhi-NCR during the first week of this month, to target 11 entities operating in the NCR that had made fake supplies to Maharashtra-based entities.

The targeted searches showed that these 11 entities were non-existent at the declared addresses which were found to be religious places, residences of unrelated persons or non-existent on the ground, DGGI Nagpur said in a statement.

In the first fake invoice network, six of these 11 NCR-based entities had made bogus transactions of goods with the Nashik- and Dhule-based entities, while four of them shared common Permanent Account Numbers (PANs) with other entities.

These 10 NCR-based entities had themselves availed fraudulent input tax credit of Rs 315.65 crore and passed on a part of this fraudulent ITC to the Nashik- and Dhule-based entities.

In another fake invoice network, an NCR-based entity had passed on fraudulent input tax credit of Rs 145.69 crore without any corresponding inward supplies. And, a large part of this fraudulent ITC was passed on to some entities of the first network that had further passed on this fraudulent ITC to the Nashik- and Dhule-based entities.

Thus, the two major fake invoice networks, consisting of 11 NCR-based entities operating between Nashik/Dhule and NCR, engaged in fraudulent transactions of about Rs 2,563 crore involving fake ITC of Rs 461.34 crore.

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