New Delhi (India), 19th March 2023: The Finance Ministry reported on Saturday that GST officials in Delhi had uncovered a fake invoicing ring that involved tax evasion of Rs 17 crore and had detained two people.
According to a statement issued by the ministry, Inspectors from the Central Goods and Service Tax (CGST) Delhi South Commissionerate visited the registered offices of three fictitious businesses, M/s. NexGen Busicorp, M/s. XEL Informatics, and M/s. GW Infotech Pvt., which participated in circular trading and fake invoices.
Sanjay Kumar Srivastava and Sunil Gulati were both detained on March 17 in this matter. After the accused were presented to the Duty Metropolitan Magistrate, they were remanded to judicial custody for 14 days.
An official statement said, “Preliminary enquiry conducted so far into the transactions of these firms has revealed tax evasion of Rs 17 crore approx. The proprietor/director in his confessional statements has admitted his role in passing and availing fraudulent ITC without any underlying supply of goods.”
The officers took action based on specific information regarding a few fictitious companies that were established only to produce invoices for services rendered and pass along ineligible input tax credits.
