• Notification Date: 22-03-2023
• Notification No: N/A

GST Officials Arrest Fake Invoice issuers involved in Tax Evasion of 17 Crore

A lot of GST frauds and tax evasions have been reported recently. The Delhi GST officials arrested two individuals for issuing fake invoices and evading tax of Rs.17 crores. On March 17, Sanjay Kumar Srivastava and Sunil Gulati were arrested. The accused have been remanded to judicial detention for 14 days after being produced before the Duty Metropolitan Magistrate, according to the ministry. Three fake businesses, M/s. NexGen Busicorp, M/s. XEL Informatics, and M/s. GW Infotech Pvt., engaged in fraudulent invoicing and circular trade, were exposed to inspection by the Central Goods and Service Tax (CGST) Delhi South Commissionerate. According to the statement of the officials, the preliminary investigation into these firms’ transactions has so far turned up approximately Rs 17 crore in tax evasion. In his confessional statements, the owner/director acknowledged his involvement in submitting and receiving fake ITCs without any supporting supply of goods. 

The officers acted based on specific intelligence regarding a few bogus companies that were established just to produce invoices for services rendered and pass along ineligible input tax credits. Recently, some insurance intermediaries have fabricated the GST invoices. In accordance with section 70 of the Central Goods and Services Tax (CGST), the tax authorities summoned several insurance intermediaries for fabricating invoices under the guise of marketing and sales in cooperation with insurance businesses. Further, during the inspection, some incriminating documents were retrieved from the premises of the taxpayers. The government is still working to curb tax evasion and close GST loopholes.