The officials in the anti-evasion wing of Central GST Commissionerate in Mangaluru have registered a case against two firms for raising fake invoices and evading GST. A press release by the commissionerate said that the firms Thouheed Scrap Dealer and MK Traders had taken the fraudulent input tax credit (ITC) based on fake invoices received from different firms/entities, without actual receipt of the goods. The ITC taken was utilized for evasion of GST on their supplies of metal scrap, procured from local unregistered dealers, without payment of GST to manufacturers of aluminum, copper rods, ingots, castings, etc.
The amount of ITC taken and utilized based on the fake invoices by Thouheed Scrap Dealer and MK Traders is approximately ₹15 crore, and the value of goods involved in this case is approximately ₹83 crore, it said. PK Abdul Raheem, proprietor of Thouheed Scrap Dealer, and Abdul Khadar Kuloor Chayebba, Proprietor of MK Traders, have been arrested. The investigation is progressing to trace further leads to identify other firms involved in the fake invoice racket, the release added.