Six Held In 128 Crore Fake GST Invoice Racket In Delhi Police Latest News Delhi

A ₹128 crore fake GST invoicing racket has been busted in Delhi, leading to the arrest of six individuals. The accused allegedly created shell companies to generate fraudulent invoices and claim undue Input Tax Credit (ITC). These fake invoices were used to evade GST and launder money. The investigation revealed a complex network of transactions designed to mimic legitimate business operations. Authorities are now tracing the flow of funds and identifying beneficiaries of the fraudulent ITC claims. This crackdown underscores the government's commitment to combating GST evasion and ensuring tax compliance. Further investigations are underway to determine the full extent of the fraud and identify any additional individuals involved.

Section 132 of the CGST Act, 2017, deals with offences and penalties related to fraudulent availment of ITC. Availing ITC based on fake invoices is a cognizable and non-bailable offence, potentially leading to imprisonment and penalties. Businesses must exercise due diligence to verify the genuineness of invoices to avoid legal consequences.

Tax authorities are increasingly using data analytics to identify and crack down on GST fraud. Businesses should implement robust internal controls and regularly audit their GST compliance to mitigate the risk of inadvertent errors or involvement in fraudulent schemes. Enhanced due diligence during vendor onboarding is crucial.

This bust highlights the risk of dealing with entities involved in fraudulent invoicing and the potential for significant penalties and legal repercussions for businesses that avail themselves of such fraudulent ITC.