GST intel officials bust 2 fake invoicing rackets

In the past week, officials of the Director General of GST Intelligence, sub-national unit (east), busted two rackets of fake invoicing involving tax evasion of nearly Rs 380 crore.

On Wednesday night, GST officials arrested a person running 28 shell companies. He had allegedly defrauded through fake invoicing worth Rs 240 crore. The businessman had opened a chain of shell companies over the past three years which were part of a big chain operating from the state. Any businessman with unaccounted money would send cash through money peddlers to him and he would send the money through a maze of companies. The money, after deducting a hefty commission, would then be returned to the sender as a legal amount arising out of a purchase.

The purchase would be fictitious and involve no physical movement of goods. GST officials came across a lot of fake invoices during the searches. These invoices were later used by the senders to get input tax credit against those purchases. On Tuesday, a team of GST officials conducted searches at his residences and business premises at Bangur Avenue. They came across a huge network operating across the country. The fake invoices showed he had been issuing such invoices to companies across the country and mopping up money. He was sent to 14 days’ judicial custody by the Alipore CJM court.

Earlier last week, officials had arrested another businessman operating in Kolkata and Jaipur, evading at least Rs140 crore. The officials arrested the businessman as soon as he landed in Kolkata from Rajasthan.

The person used a similar method to launder money with the help of fake invoices.

Source from - https://timesofindia.indiatimes.com/city/kolkata/gst-intel-officials-bust-2-fake-invoicing-rackets/articleshow/91824619.cms