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Fake Invoicing Racket Involving 38.5 Crores in Tax Evasion Uncovered

According to the finance ministry, Goods and Services Tax (GST) authorities discovered a ring of 54 fictitious entities engaged in 611 crores in false invoicing and 38.5 crores in tax evasion.

Delhi The South CGST Commissionerate conducted searches and inspections around Delhi, revealing a cartel operating 54 bogus entities registered in the Delhi-NCR region that participated in fraudulent billing and circular trade.

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Incriminating materials, such as rubber stamps and letterheads from numerous businesses, as well as mobile phones and laptop computers, were taken from the search site.

So far, preliminary investigations into these transactions have uncovered fraudulent billing of around 611 crores and tax evasion of approximately 38.5 crores. The participants of the cartel have admitted their involvement in operating these fictitious businesses in their confessional admissions, according to the ministry.

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Three major members of the cartel were detained on February 23 and held in judicial prison for 14 days: Ankit Gupta, the brains behind these fraudulent businesses, and two of his collaborators, Rabiendra Singh and Rajendra Singh.

The ministry said in a separate statement that the Central Goods and Services Tax (CGST) Commissionerate, Faridabad, of the Panchkula CGST Zone, arrested two people on February 23 for running a fake billing racket involving five dummy firms, for issuance of fake invoices totaling over 200 crores without the real supply of goods and availing and passing deceptive Input Tax Credit (ITC) totaling 31.85 crores.

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Issuing an invoice or bill without the provision of goods or services, as well as illegal availment or utilization of Input Tax Credit, is a cognizable and non-bailable violation under GST legislation if the sum exceeds 5 crores.

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