The Delhi government’s GST department on Saturday unearthed an alleged ₹347-crore fake GST billing scam spread across 11 firms and also arrested a person, believed to be one of the kingpins, officials said.
The firms were engaged in circular trading and issuing fake bills to claim bogus Input Tax Credit (ITC) to evade taxes.
“This is the first arrest by the Delhi GST department and we hope it will send a strong signal to tax evaders,” said Prince Dhawan, special commissioner (evasion), GST department.
These firms were issuing fake or exaggerated invoices regarding the supply of goods, without the actual supply of goods, to evade taxes.
“The owner of Ms. Super Steel India Limited, Mayank Jain, who is considered one of the kingpins of the scam, has been arrested by the department on Saturday, January 1, 2022. He has been sent to judicial custody for 14 days. Judicial Magistrate,” said an official statement.
It was also learned that many of these 11 firms were owned by an individual and could have been set up with the aim of creating long tax chains to avoid detection under the tax laws.
These firms had issued inflated or fake invoices to the tune of ₹347 crore and that resulted in total tax evasion of ₹40 crore, the statement said.
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