Date of Publication: | Sat, 24 Sep 2022 02:46 AM (IST)
Indore Crime News: Indore (New World Rep.). Central GST Indore Preventive Wing busts 27 crore fake ITC scam. The forgery wire spanned at least five states. A fraudulent gang formed a defunct company through forged documents. Evasion was done by passing Input Tax Credit (ITC) in GST to many traders one after another through fake bills and companies. Fraudsters also used fake Aadhaar cards and identity cards to set up closed companies.
An analysis of CGST data shows that a company in Indore has passed ITC of 27.58 crores from a company in Coimbatore. There is no actual ITC in the name of the Tamil Nadu company where the ITC was passed to the Indore company either in the company’s accounts or in the GSTR-2.
Following this, the Prevention Division of CGST Indore took up the investigation. It is learned that the director of the indoor company that took over the ITC closed it down. When the GST officials conducted an investigation, it was found that the founder of the company closed it. But some people transfer the company to their names through brokers as it costs more to wind up the company. Tax evasion gangs hijacked the company. They changed the names of company directors with fake Aadhaar cards and identity cards and took up management.
The fake ITCs were then transferred to companies across the country by showing bogus bills and paperwork. When the CGST’s prevention department reached the company’s address in Indore, no one was found there. The documents submitted for company registration were also found to be fake. The company later transferred the ITC to companies in Uttarakhand. From there, ITCs reached companies in Delhi as well as other states.
Trying to reach scammers
According to Principal Commissioner, CGST Indore, Partharaya Chaudhary, the department is engaged in connecting fake ITC takers to genuine companies and ultimately to the beneficiaries. An investigation has been started for this. The success lies in reaching out to individuals running fake ITC gangs through companies. The assistance of other investigating agencies is also taken if necessary. As the fake document is also created Aadhaar card, action will be taken under IT Act and other laws.