Delhi: Rs 347 crore fake GST billing scam, across 11 firms, unearthed; 1 held

 








Enforcement officials of the Delhi state GST department said they had unearthed a fake GST billing scam of Rs 347 crore spread across 11 firms.


According to officials, the firms that have been accused of evading taxes were engaged in circular trading and issuing fake bills to claim fraudulent input tax credit to evade taxes.

One accused, Mayank Jain, has also been arrested.

“The proprietor of Ms Super Steel India Ltd., Mayank Jain, believed to be one of the kingpins of the scam has been arrested by the department on Saturday, 1st January 2022. He has been remanded to 14 days judicial custody by the judicial magistrate. More arrests may follow as the investigation unfolds,” an official statement, issued by the Delhi state tax department, said.

According to officials, the firms would issue fake or inflated invoices, without supplying any goods. All unaccounted transactions were settled in cash.

“It was also discovered that several of these 11 firms belong to only one person and could have been set up for the purpose of creating long tax chains to avoid detection under tax laws. Through a complex data-driven investigation, investigators uncovered that 4 of these 11 firms had filed tax returns from computers with the same IP address. Also, 6 firms had the same contact number and 4 were using the same email-id. Two other firms had the same bank account number. In a secret verification conducted by the department inspectors, none of the 11 firms was found to be existing at its registered address,” the statement said.


“The figure could go up as the upstream and downstream dealers of these firms are further scrutinised. The department will also take up investigation of other firms in the business chains of these suspicious firms, including those spread across other states outside Delhi,” said an official.


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