Fake invoice racket worth Rs 83-crore in Mangalore

June 10: Officers of the Anti-evasion Wing of Mangalore Central GST Commissionerate arrested Proprietor of M K Traders, Abdul Khader Kuloor Chayebba and proprietor of Thouheed Scrap Dealer, P K Abdul Raheem on charges of raising fake invoices and evasion of GST.
The two firms had taken fraudulent input tax credit (ITC) based on ‘fake invoices’ received from different firms or entities, without actual receipt of the goods. The amount involved is estimated at over Rs 83 crore. They used this fraudulent ITC for evasion of GST payable on supplies of metal scrap, procured from local unregistered dealers to the manufacturers of aluminium, MS, copper rods, ingots and castings.
Commissioner of Central GST Dharm Singh said that this offence falls under the cognisable and non-bailable offence as per provisions of Section 132 of the CGST Act, attracting inter alia, the provisions for arrest under Section 69 of CGST Act. He mentioned that investigations are still in progress to identify other firms involved in the racket.