Fake GST Invoice: Tax officers arrest 3, book three firms for tax evasion worth Rs 600 crores

Senior Journalist Krishnanand Tripathi reports that as many as three persons have been held in connection with fake Input Tax Credit (ITC) invoice case. Moreover, three firms have also been booked for the issuance of invoices without any actual supply of goods.

New Delhi: Tax officials have arrested three persons and booked three firms for fraudulently claiming IGST refunds by using fake Input Tax Credit (ITC) invoices, said officials in the ministry of finance.

Though the names of the arrested persons have been withheld, the officials of Directorate General of GST Intelligence (DGGI) have booked three firms, Fortune Graphics Limited, Reema Polychem Private Limited, and Ganpati Enterprises.

“These firms were involved in the issuance of invoices without any actual supply of goods,” the finance ministry said.

Recently, tax authorities have cracked the whip against tax evaders by using data analytics and other sophisticated tools that helped them in detecting the entire chain of companies and individuals involved in the use of bogus GST invoices.

These three cases were also detected by tax officers by using the information obtained from another case against an exporter Anannya Exim, which was unearthed in a joint operation of DGGI and Directorate of Revenue Intelligence around than 9 months ago.

The exporter was allegedly using fake GST invoices to fraudulently claim IGST refund.

During the investigation, officials of the DGGI found that Reema Polychem, Fortune Graphics Limited and Ganpati Enterprises issued invoices worth more than Rs. 4,100 crores. Investigations revealed that these bogus invoices were used to fraudulently claim an input tax credit worth Rs 6,00 crores.

“In this regard, three persons have been arrested for committing offences under the GST Act,” officials said.

According to tax officials, two of them are directors and proprietors of Fortune Graphics, Reema Polychem, and Ganpati Enterprises, and they have been continuously avoiding appearance at DGGI Headquarters located at RK Puram in New Delhi.

Directorate General of GST Intelligence is the nodal agency for detecting frauds and tax evasion related to the GST, Central Excise Duty and Service Tax.

DGGI officials also arrested the director of another firm AB Players Exports Pvt Ltd who controls several firms and companies engaged in export and import. He was found to be involved in fraudulently claiming IGST refund by using fake GST invoices issued by the three firms.

All three have been arrested under section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 and remanded for judicial custody by the Magistrate.