Lid off fake billing scam worth Rs 70 cr

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The Excise and Taxation Department has unearthed the biggest-ever fake billing scam in Chandigarh ever since the implementation of the Goods and Services Tax (GST). While the department has identified five bogus firms under its jurisdiction for their alleged involvement in the scam worth around Rs 70 crore,  it has also detected 15 more firms falling under the Central GST Department. It has also identified  132 firms registered on bogus addresses. The department is now in the process of writing to the police to file an FIR  against the five firms. Sources said the five firms generated fake bills to fraudulently claim the input tax credit (ITC). The bogus bills were used to fraudulently claim the ITC from the department without the actual movement of goods. the sources said the firms involved in the racket obtained GST registration. Using the registration, the fake movement of goods was shown and bogus purchase invoices were generated. These bills were sold at a lump sum amount to actual traders, who not only purchased goods from the grey market to claim the ITC illegally, but also evaded taxes.

Mandeep Singh  Brar, Deputy Commissioner-cum-Excise and Taxation Commissioner, ordered a detailed inquiry after the matter came to his notice. Various teams of excise officers were formed,  which conducted a survey for over a month. Given the huge amount of fake bills generated, the officials had to work hard to unearth the scam. The firms involved in the racket got themselves registered in villages in the city. The sources said the firms involved in tax evasion were largely into the business of iron metals, scrap of ferrous and non-ferrous metals. All these items fall under the 18 percent tax slab. The firms involved in the scam included AK  Trading Company,  Vinita   Enterprises,   RJ  Enterprises,  Mahadev Metals and RD  Trading  Company. The department has cancelled the GST numbers of the firms from the date of the registration. 

Read More at: https://www.tribuneindia.com/news/chandigarh/lid-off-fake-billing-scam-worth-rs-70-cr/808562.html