Fake GST Racket busted in Hyderabad
Fake GST Racket busted in Hyderabad
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In a case reported from Hyderabad, the Commissionerate of Central Tax (Excise & Service) busted a Rs 22.4 crore fake invoice racket and five entities were booked in the case. These accused allegedly procured and supplied fake GST invoices without actual supply of goods.

The officers used intelligence received from Kolkata and information gathered in the city to book cases against Hindustan AAC products, Aitri Engineers & Contractors Ltd, Sri Krishna Castings, Shree Metals and Aavya Enterprises.

According to a report in the Deccan Chronicle (DC), the commissioner alleged that the five accused entities claimed transport of products like metal scrap was passing on fraudulent input tax credit (ITC) since July 2017. Principal Commissioner, Central Tax, M. Srinivas told DC that some of them were found utilizing fraud ITCs in order to offset their GST liability on the manufacturing goods, thereby evading the payable tax. He added, that the value of goods involved was Rs 131 crore and ineligible input tax credit availed stood at Rs 22.64 crore.

Reportedly, searches were conducted at different premises in connection with these five entities on May 15 and 17. The authorities seized unaccounted cash of Rs 20 lakh and incriminating documents. The details of the foreign currency which was also recovered were also shared with the income-tax department.

The DC report further mentioned that the investigation revealed that vehicles that were mentioned to carry huge volumes of goods as in the e-way bills were all fictitious. And while interrogation some of them were even found to be passengers vehicles, scooters and tractors.

However, three key people have been arrested under Section 69 of the CGST Act, 2017. And they have remanded to judicial custody for 14 days.

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