Fake ITC invoice scams busted in Delhi and Maharashtra

By: |
November 13, 2020 2:30 AM

“It appears the main objective was to inflate the turnover of his firm artificially, and obtain enhanced credit limit from the bank,” an official said.

Separately, the central GST commissionerate in South Delhi busted a syndicate of firms involved in availing invoices and e-way bills issued on the GST identification numbers of fake firms and obtaining IGST refunds on these documents.Separately, the central GST commissionerate in South Delhi busted a syndicate of firms involved in availing invoices and e-way bills issued on the GST identification numbers of fake firms and obtaining IGST refunds on these documents.

The GST intelligence directorate has arrested a Maharashtra lawmaker’s (MLA) son for issuing fake invoices worth Rs 520 crore of input tax credit (ITC), sources in the tax department said. The arrest was part of a pan-India drive undertaken by the indirect tax department’s intelligence wing.

Sunil Gutte, son of MLA Ratnakar Gutte, was arrested along with his associate after it was found that the firm in which he is a director had been engaged in availing `304 crore worth of ITC fraudulently while also passing Rs 216 crore worth of ITC to other multiple entities. The ITC was availed based on fake invoices without actual supply or receipt of goods and services.

“It appears the main objective was to inflate the turnover of his firm artificially, and obtain enhanced credit limit from the bank,” an official said.

About two year ago, Gutte’s brother, a movie director, was also arrested for availing fraudulent IGST refunds. “Their father who owned a sugar mill was also booked by Maharashtra police and enforcement directorate for allegedly availing loans worth Rs 328 crore from six banks, using names of 2,298 farmers, some of whom were dead, from some villages in Parbhani district,” another official said.

Separately, the central GST commissionerate in South Delhi busted a syndicate of firms involved in availing invoices and e-way bills issued on the GST identification numbers of fake firms and obtaining IGST refunds on these documents.

The firm in question M/s Baan Ganga Impex availed invoices from the fake entities amounting to about Rs 685 crore involving GST of Rs 50 crore and succeeded to get refund of Rs 35 crore.

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