PUNJAB STATE GST LUDHIANA ARREST 3 PERSONS WHO CLAIMED FRAUDULENT ITC CREATED BY WAY OF BOGUS INVOICES WITHOUT ACTUAL PURCHASE OF GOODS

Ludhiana, November 10, Channel88 News (Bureau):- Officers of the Special Investigation team, Punjab State GST, Ludhiana have arrested 3 persons being proprietors/Kartas of the firms located in Ludhiana that had claimed fraudulent ITC created by way of bogus invoices without actual purchase of goods (readymade garments) through purchases shown from bogus/non-existent firms.

In a press release issued by Tejbir Singh Sidhu, Deputy Commissioner (State GST), Ludhiana, the search and seizure operations were conducted at 4 premises by the teams of the department including business premises of the accused in order to gather evidence for establishing the modus operandi that involved utilising the fake invoices without actual receipt of goods. A network of bogus firms using fake IDs in the name of various persons including daily wagers, auto-rickshaw driver etc were created across 5 different states in order to pass on the fraudulent ITC to the final beneficiaries (accused).

Accused used the fraudulent ITC generated by way of fake invoices for the purpose of exports which were IGST paid and thereafter claimed refund from the customs authorities.

Investigation had revealed that the bogus billing network of the non-existent firms was used to generate fake invoices of more than Rs 350 Crore resulting into utilisation of ingenuine ITC worth more than Rs 30 Crore. The accused 3 persons had utilised about Rs 23 Crore of the total fraudulent ITC. The accused have been arrested on 10/11/2020 under the provisions of GST laws and remanded to judicial custody for 14 days. Action against other beneficiaries is also being initiated. Further investigation is in progress.