CHANDIGARH: In a well coordinated operation against the Goods and Services Tax (GST) scam, Haryana police has busted 4 major gangs related to issuing or registration of bogus firms involved in GST fake invoice bills scam which defrauded the government exchequer to the tune of over Rs 464.12 crore through fraudulent means across the state.
The nexus of these fraudsters was active not only in Haryana but across the country.
The crackdown on GST fake invoice scam has also led to the recovery of over Rs 112 crore and unearthing fake GST Identification Numbers (GSTIN).
A total of 72 police cases have been filed so far in which 89 accused have been arrested by crime branch. Among the total arrest, 40 cases have been registered majorly on Govind Sharma, Gaurav, Anupam Singla and Rakesh Arora.
Director General of Police (DGP) Haryana said that these persons issued fraudulent invoices to numerous firms and companies without actual supply of goods through fraudulent e-Way bills (GST related challans for transporting consignments) and facilitated fake (Income Tax Credit) ITC entitlement on GST portal through GSTR-3B form.
It has also been revealed that fraudulent ITC worth crores of rupees has been passed by these gangs using fake GST invoices, e-way bills and with the help of forged bank transactions. During the course of investigations, it has also come to light that out of the arrested persons some are white-collar economic repeated offenders. Police has also blocked inadmissible ITC worth of Rs 97.22 crore in Excise and Taxation Department.
A total of 21 FIRs against fake firms belonging to Govind gang active in Panipat and adjoining areas were lodged in year 2019 while other three gangs involved in major GST evasion were booked between 2018 and 2019. Police has so far blocked ITC of these gangs to the tune of over Rs 80 crore in Excise and Taxation Department.
The DGP informed that the major goods involved in these GST invoice scams were scrap, iron and steel articles, cotton-yarn, paper etc. The drive against the GST evaders and ITC fraudsters is expected to intensify and more arrests are likely to be done in near future. Investigations of these cases are in progress to identify other beneficiaries to recover the tax liability, he added.