The Anti-Evasion wing of CGST Delhi South Commissionerate has discovered here today yet another case of fake invoicing and GST fraud alongside a new modus operandi of defrauding the exchequer by exploiting the facility of refunds given for inverted duty structure. Over 120 entities who are involved in the transactions have come to light so far, involving fake invoicing of ₹ 1,600 crores and tax evasion of ₹ 241 crores.

The investigations have unearthed a well organised racket of creating bogus firms, issuing fake invoices and bogus e-way bills to generate and encash tax credits.

The main culprit was arrested today as per the provisions of Section 69 of the CGST Act, 2017 and produced before judicial magistrate today itself and remanded to 10 days of judicial custody. The racketeer had created several firms on the basis of unauthorised access to identity documents of various persons.

The new modus operandi was uncovered by a team of investigators, who worked unceasingly over many weeks to uncover the maze of companies created across India. Incriminating electronic evidences have been recovered from the premises of the accused.

GST fraud detection exposes bogus invoicing and refund exploitation, leading to arrest under CGST Act provisions. Detection of a large-scale GST fraud involving organised fake invoicing and exploitation of refund mechanisms for an inverted duty structure; investigators uncovered a network issuing bogus invoices and e-way bills to generate and encash illegitimate input tax credits, recovered electronic evidence, and effected an arrest under the CGST framework for creation of bogus firms through unauthorised use of identity documents.