OFFICE OF THE COMMISSIONER OF CENTRAL TAX, CENTRAL EXCISE & SERVICE TAX

MEDCHAL COMMISSIONERATE

MEDCHAL GST BHAWAN

11-4-649/B, Lakdi ka pool, Hyderbad

E-mail: [email protected]

Date : 06.01.2021

 

PRESS NOTE

A CASE OF FAKE INVOICES

Officers of Anti-Evasion, of Medchal Commissionerate booked cases of fake invoices and evasion of GST against Shri Gordhan Singh. Arjun Chowdhary and Kiran Chowdhury, who created non-existent firms and issued invoices without supplying goods and facilitated fraudulent availment of input tax credit by over 200 different firms/Companies  (within and outside the Commissionerate) thereby defrauding the government revenue to the  tune of ₹ 67,76 Cr (approx.)

Further investigations revealed that Shri Gordhan Singh, Arjun Chowdary and Kiran Chowdhary had created around 11 bogus firms either in their names or in the name of different individuals by alluring them with monthly payments of meagre amount, taking their IDs and taking registrations in the name of the said individuals. They were aided by Shri Vikas Saraf, the Auditor, who helped them in obtaining multiple GST registrations, arranging input bills from bogus firms, maintaining all records, viz, purchase invoices, accounts, filing of IT and GST returns keeping ID and passwords under his control.

During the investigations it is noticed that the fake invoice trading took place against payment of 9%/10% commission in cash. Further, it is also noticed that the recipient firms of the fake bills are paying the invoice amounts in regular banking channels by way of RTGS/Cheque to the bogus firms who have issued fake bills and the amounts are being paid back to them by withdrawing cash from their account by deducting their commission.

Shri. Arjun Chowdaty, Kiran Choudhary, and Vikas Saraf have accepted their involvement in the case as stated above, vide their statements and were arrested on 06.01.2021, produced before the Hon'ble EOC on the same day and remanded upto 20.01.2021. Whereas, Shri Gordhan Singh is absconding and all efforts are on to trace the accused.

Further investigation and recovery proceedings are underway.

COMMISSIONER

Fake invoice fraud under GST facilitating illicit input tax credit through bogus registrations and bank-to-cash circulation. Anti-evasion officers uncovered a coordinated scheme of fake invoices and GST evasion in which perpetrators created bogus firms, procured multiple registrations, controlled identities and records, and facilitated fraudulent availment of input tax credit for over two hundred recipient firms through commission-based invoice trading and bank-mediated payments with subsequent cash withdrawals.