CGST Officials Catches Fraud ITC Via Duplicate Billing of INR 1,278 CR

On the grounds of specific intelligence, the administrators of the anti-theft branch of Central Goods and Service Tax (CGST), Commissionerate, Delhi (East) have smashed a big racket for the generation of the huge unacceptable input tax credit (ITC) via dummy billing of approximately Rs 1278 crore. An effective committee was managing it by running the 7 distinct fake companies with the purpose of the giving of unacceptable credit of Rs 137 crores (approx).

The search program was going in more than 9 areas which are present in different locations in the state of Delhi and Haryana for determining the assessee who was cheating the government of its legal taxes. Their way of working consists of the building of bogus invoices and bills, without any movement of goods. There were all fake GST e-way bills Know the details on blocking and unblocking e-way bill feature for non-filers of GST return. Also, we solved general queries through important frequently asked questions that are created to transport the goods.

Shri Ashish Aggarwal is the major player in this racket who was then arrested under section 132 of CGST act dated 29/10/2020 and has gone on the remand under the lawful custody armed by duty Metropolitan Magistrate till hearing of the usual administrative remand application by the CJM Patiala House Court. For more than 60 days the person was absconded and Anti Evasion branch, officers tightened to secure his presence so to record the statement, in which he accepts his fault and was captured afterwards.

The person who has been enrolled in the title of Shri Ashish Aggarwal’s 66 years old mother into which fake ITC of Rs 77 crore has relinquished is the major beneficiary firm of this false billing system was M/s Maya Impex. under Section 132(1)(b) and 132(1)(c) of the Central GST Act, 2017 Get to know about GST levy terms on disposal of the company’s capital goods under the CGST Act 2017. Also, we mentioned GST on the disposal of capital assets, if no ITC is claimed on capital goods. Read more notifies that Shri Ashish Aggarwal has done this with the intention and this is cognizable and non-bailable offenses according to the procurements of Section 132(5) and punishable under clause (i) of the subsection (1) of Section 132 of the Act ibid.

The major offense was the fake billing which is engaged in generating and delivering the dummy ITC to the milk products industry. False invoices were raised for fake sales of milk products like ghee milk powder etc. it is relevant to state that the other number of distinct companies, major brands like M/s Milk Food Ltd. was the main beneficiaries of this unacceptable credit. While research operations, a tremendous quantum of compromising credentials sustaining this racket was discovered.

An unacceptable input tax credit of Rs 7 crore has been discovered and also other examinations are in process to prove the other fake billings related to this case who fraudulent the exchequer.