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Rs 35-cr GST refunds on fake bills

KT NEWS SERVICE. Dated: 11/13/2020 1:19:31 PM

NEW DELHI, Nov 12: In one of the unique frauds on the Goods and Services Tax (GST) system, a Delhi-based syndicate of firms could allegedly siphon off Rs 35 crore as the GST refund on the basis of the invoices from fake entities amounting to Rs 685 crore.
A case has been registered against Messrs Baan Ganga Impex and its partner Rakesh Sharma dealing with all operations of the firm was arrested on November 9 and sent to the judicial custody by Saket courts' metropolitan magistrate for 14 days.
Delhi South CGST Commissioner became suspicion on the invoices and E-way Bills issued on GSTIN of fake and dummy funds to get refund of the IGST, the finance ministry disclosed on Thursday.
From preliminary scrutiny of the seized documents, the data/information available on E-way Portal/GSTN portal, it is found that the firm availed Invoices from non-existing 48 entities creating a web of suppliers among themselves and passing on ITC to each other. Finally, the ITC from all the suppliers is passed on to the firm which in turn avails refund on the strength of export of goods procured from the unregistered suppliers.
The nexus has used fabricated vehicle numbers to generate e-way bills which were found to be of two wheelers, buses, JCB, private cars and Ambulances.