The Noida Police has issued non-bailable warrant issued against 10 people for defrauding the government of ₹15,000 crore by using fake input tax credit (ITC) documents, news agency ANI has reported on 20 August.
As per report, the police has said that all the ten accused are from Delhi and Haryana. Police raid is underway in search of them.
Earlier on 12 August, a businessman was arrested by the Central GST in Chhattisgarh’s Bilaspur district for allegedly availing and utilising ITC worth ₹10.14 crore by issuing bogus invoices, an official had said as reported by PTI. Sanjay Shende was arrested under relevant provisions of the CGST Act, the official said as quoted by PTI.
Earlier in July, CBIC chief Vivek Johri had said that the CBIC is working on biometric authentication of risky entities under GST as it looks to crack down on fraudsters who are misusing the PAN and Aadhaar of other people to obtain GST registration. He had said tax authorities are also discussing some more tightening in the GST return filing system to limit the scope of claiming ITC, when taxes have not been paid by suppliers in the supply chain, PTI reported.
The CBIC chief further said that during the ongoing drive against fake registration, GST officers have identified around 12,500 bogus entities, which were used to claim fake ITC and defraud the exchequer. He had also said that certain locations where fake entities were rampant included Delhi, Haryana, and Rajasthan, further adding, certain parts of Gujarat, Noida, Kolkata, Assam, Telangana, Tamil Nadu and Maharashtra also had fake businesses with GST registration.
Johri had further said that GST officers busted 304 syndicates involving 9,000 fake GSTINs and input tax credit (ITC) claims of ₹25,000 crore in the ongoing drive against bogus firms.