Latest News | Delhi GST Officers Detect Rs 17 Cr Tax Evasion by Issue of Fake Invoice, Arrests 2

New Delhi, Mar 18 (PTI) GST officers in Delhi have unearthed a fake invoicing racket involving tax evasion of Rs 17 crore and arrested two persons, the Finance Ministry said on Saturday.

Central Goods and Service Tax (CGST) Delhi South Commissionerate conducted inspection at the registered premises of three bogus firms/company, namely M/s. NexGen Busicorp, M/s. XEL Informatics and M/s. GW Infotech Pvt., engaged in fake invoicing and circular trading, according to a statement.

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During the inspection, some incriminating documents were found from the premises of the taxpayers.

"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," an official statement said.

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In this case, two persons -- Sanjay Kumar Srivastava and Sunil Gulati -- were arrested on March 17. The accused were produced before the Duty Metropolitan Magistrate following which they have been remanded to judicial custody for 14 days, the ministry said.

The officers acted on specific intelligence concerning certain bogus firms that were created solely for the purpose of generating goods-less invoices and passing on of ineligible input tax credit along the chain.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)