Central GST Delhi North Commissionerate has busted a racket of issuance of fake invoices without actual supply of goods and services. Two individuals – Asrar Akhtar and Vikas Singh have been arrested in this matter and remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), New Delhi at Patiala House Courts. The accused and their associates were found to be operating 19 fake firms created to facilitate fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer. Prima facie fraudulent ITC of about ₹ 25 crores has been detected to have been passed on using invoices involving an amount of ₹ 137 crores.

The modus operandi of these individuals and their associates Sabban Ahmed and Arif, inter alia, involved issuance of fake invoices of firms registered across Delhi NCR from a premise in Azadpur, Delhi. Voluminous incriminating documents such as fake invoices, diaries, letter-heads, rubber stamps of fake firms, cheque books, transporter’s consignment notes as well as electronic devices have been recovered. Investigations are underway to identify other individuals and firms involved in this racket.

The accused have committed offences under the provisions of Section 132(1)(b) of the CGST Act 2017, which are cognizable and non-bailable under Section 132(5) and punishable under Section 132(1)(i) of the said Act. Accordingly, Asrar Akhtar and Vikas Singh were arrested on 01.08.19 and have been remanded to judicial custody for 14 days on 02.08.2019.

Fake invoice racket leads to arrests and exposes large-scale fraudulent input tax credit network. Issuance of fabricated tax invoices to generate fraudulent Input Tax Credit is alleged in a coordinated scheme using multiple sham firms; two individuals were arrested for operating a network that issued fake invoices from a central premise for firms across the region. Investigations recovered voluminous documentary and electronic evidence-fake invoices, letterheads, rubber stamps, diaries, consignment notes, cheque books and devices-and inquiries continue to identify further participants. The accused are alleged to have committed offences under GST penal provisions that are cognizable and non-bailable, and have been remanded to judicial custody pending investigation.