GST Bust! Rs 83 Cr Fake Invoices Fraud Busted by sleuths of Mluru GST Office- 2 Arrested
GST Bust! Rs 83 Cr Fake Invoices Fraud Busted by sleuths of GST Officials of Mangaluru Central GST Commissionerate- Two Arrested (P.K. Abdul Raheem Proprietor of M/s. THOUHEED SCRAP DEALER and Abdul Khadar Kuloor Chayebba, Proprietor of M/s. M K TRADERS)
Mangaluru : In a press release by Dharm Singh, the Commissioner of Mangaluru Central GST it is stated that Officers of the Anti-Evasion wing of Mangalore Central GST Commissionerate booked an offence case of fake invoices and evasion of GST worth Rs 83 crore, against M/s. THOUHEED SCRAP DEALER and M/s. M K TRADERS.
The said firms had taken fraudulent input tax credit (ITC) based on ‘Fake Invoices’ received from different firms/entities, without actual receipt of the goods. The fraudulent ITC taken was utilized by them for evasion of GST payable by them on their supplies of metal scrap, procured from local unregistered dealers without payment of GST, to the manufacturers of Aluminium/MS/Copper- Rods/Ingots/ Castings etc. They are also involved in raising fake invoices to transfer fake ITC credit further in the fake invoice chain.
The offence involved falls under the cognizable and non-bailable offence as per provisions of Sec. 132 of the CGST Act, attracting inter alia, the provisions for arrest under Sec. 69 of CGST Act. Sh. P.K. Abdul Raheem Proprietor of M/s. THOUHEED SCRAP DEALER and Sh. Abdul Khadar Kuloor Chayebba, Proprietor of M/s. M K TRADERS, are arrested on 09.06.2019. The total amount of fraudulent ITC taken and utilized based on the fake invoices by M/s. THOUHEED SCRAP DEALER and M/s. M K TRADERS is Rs. 15 Cr (Approx) and the total value of goods involved in this case is Rs. 83 Cr (Approx).
Investigation is in progress to trace further leads to identify other firms involved in the fake invoice racket.
