GST Scam Busted: Rs.88 Cr Fake Billing by Steel Traders, 2 Held
Goods and services tax (GST) authorities have unearthed a nexus of iron and steel traders involved in fake input tax credit-related billing related to the illegal sale worth Rs 87.9 crore that led to tax evasion amounting to Rs 13.4 crore.
Three iron and steel traders based in Mandi Gobindgarh, Punjab, were caught in the illegal sale of Rs 87.9 crore that let to GST evasion to the tune of Rs 13.4 crore, a probe by the Directorate General of GST Intelligence (DGGI) Ludhiana found. The three business entities were: Aar Dee Enterprises, Aashi Steel Industries and Abhi Alloys.
The unearthing of fake highlights the potential revenue loss to central and state authorities, in turn impacting the funds for public welfare, infrastructure and social development, and causing damage to the economy and domestic markets as a whole. Such revenue loss can fundamentally obstruct fair market competition and can even lead to inflationary pressures.
Here are key things to know about the fraudulent billing detected by the GST authorities:
How was the fake billing detected? Inter-organisational and inter-regional cooperation and synergy between the DGGI offices in Ludhiana, Punjab, and in Lucknow, Uttar Pradesh, led to the unearthing of the fraud.
How did miscreants operate? Two individuals, Raman Kumar Chaurasia of Mandi Gobindgarh and Devinder Singh of Khanna in Punjab, used to procure iron and steel articles fraudulently through fake billing from Deepanshu Srivastava and his accomplice Mohit Kumar based in Lucknow, UP. The Lucknow-based due passed on fake input tax credit (ITC) to the Mandi Gobindgarh entities through 37 of their fraudulent business entities.
Further investigations showed that the Punjab-based entities had taken fraudulent ITC through fake billing from 78 business entities.
