Detection of fake invoices case by CGST Vadodara-I

Booked case against 3 firms for wrongful availment of Rs 25.5 crore ITC

The officers of CGST Vadodara-I booked three firms for tax evasion through fake invoices. Acting on the intelligence developed through data analysis the officials booked a case against three firms M/s. Capital Impex, M/s Krishna Steel and M/s Millenium Steel, Vadodara, of issuance of fake invoices valued at Rs. 107 Crores without any physical movement of goods. As per the details the action lead to wrongful availment of ITC worth Rs 25.5 crores and passing on of ITC worth Rs 19 crores.

As per the release these firms existed only on paper and had no physical activity. One individual had floated the said firms.

Investigation into the matter revealed that the said individual has obtained GST registration of many such firms by securing the identity and other relevant documents from different persons by paying them small amounts of money. He then used these firms for circulation of fake invoices and consequent availment and passing of ITC to various other firms.

The release further states that bogus sales invoices were issued by him from the said three firms to many firms of Rajkot, Bhavnagar, Jamnagar & Mumbai for passing of fraudulent ITC without any physical and actual movements of Goods.

The officials further stated that the dummy proprietors of firms so far and the individual have confessed to above modus in their respective statements. He has been arrested on 30.01.2019 and produced before the Chief Judicial Magistrate, Vadodara.

Further, investigations are underway which may reveal the existence of other fake firms issuing fake invoices without actual movement of goods, in the
case, says the release by Mallika Mahajan Principal Commissioner CGST & Central Excise Vadodara -I.