Hyderabad: The Medchal Central GST Commissionerate has busted a fake invoice racket with the arrest of three key persons.
Based on specific information received from Kolkata coupled with further intelligence that was gathered, officers of the Medchal Central GST Commissionerate registered cases against five firms/entities – Hindustan AAV products, Aitri Engineers and Contractors Limited, Sri Krishna Castings, Shree Metals and Aavya Enterprises.
Cases were booked against these firms for indulging in procuring and supplying fake GST invoices without actual supply of goods mentioned in the invoices and have been passing on fraudulent Input Tax Credit (ITC) since July, 2017, said Principal Commissioner M Srinivas here on Wednesday.
Some of them were also utilising such fraudulent ITC to offset their GST liability on their manufactured goods thereby evading the tax payable to the government. The value of goods involved is approximately Rs.131 crore and ineligible ITC availed is approximately Rs.22.64 crore.
During searches at different places from May 15 to 17, unaccounted cash of Rs.20 lakh, USD 4150 and several incriminating documents were seized. The details of the seized cash along with the foreign currency have been shared with the Income Tax department for further action.
During initial investigation, it was revealed that the details of vehicles indicated to carry huge volume of goods as mentioned in E-way bills were fictitious. Some of the vehicles on enquiry were found to be passenger vehicles which were declared as carrying goods.
So far, there persons of the five firms involved in the offence have been arrested under the relevant provisions of CGST Act 2017. The trio was later remanded in judicial custody.