The Central GST Delhi North Commissionerate has uncovered a major racket involving the issuance of fake invoices without any actual supply of goods or services, leading to fraudulent Input Tax Credit (ITC) claims.
Arrests and Judicial Custody
Two individuals, Asrar Akhtar and Vikas Singh, have been arrested in connection with the case. They were produced before the Chief Metropolitan Magistrate (CMM), New Delhi, at Patiala House Courts and have been remanded to 14 days of judicial custody.
Fraud Modus Operandi
Preliminary investigation reveals that the accused, along with associates Sabban Ahmed and Arif, were operating a network of 19 fake firms across the Delhi-NCR region.
These firms were allegedly used to:
Generate fake invoices without any actual supply of goods/services
Illegally pass on Input Tax Credit (ITC)
Defraud the government exchequer
The estimated fraudulent ITC detected so far is around ₹25 crore, based on fake invoices involving transactions worth approximately ₹137 crore.
Evidence Recovered
During searches, authorities recovered several incriminating materials, including:
Fake invoices and letterheads
Rubber stamps of fictitious firms
Diaries and records
Cheque books
Transport consignment notes
Electronic devices
Legal Provisions Invoked
The accused have been booked under Section 132(1)(b) of the CGST Act, 2017, which relates to tax evasion through fraudulent invoicing. The offence is:
Cognizable
Non-bailable
Punishable under Section 132(1)(i)
Investigation Status
Authorities have stated that the investigation is ongoing to identify other individuals and entities involved in the racket.