<p>GST authorities have unearthed a tax racket and arrested one person for allegedly defrauding the government to the tune of about Rs 140 crore through fraudulent means.</p>.<p>The Central Board of Indirect Taxes and Customs (CBIC) in a release said that the Central GST Delhi North Commissionerate has unearthed a racket "involving supply of goods-less invoices and invoice-less goods".</p>.<p>One person has been arrested in the connection and sent to judicial custody for 14 days.</p>.<p>The accused was found to be operating 10 fake firms which were created for rotation of money and fraudulent Input Tax Credit (ITC), thus defrauding the exchequer.</p>.<p>"Prima facie fraudulent ITC of about Rs 140 crore has been passed on using invoices involving an amount of Rs 1,040 crore," it said.</p>.<p>Giving further details, it said the modus operandi of the accused, inter alia, involved obtaining GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Tilak Bazar, Delhi.</p>.<p>On preliminary scrutiny it appears that there is no nexus between inward and outward supplies of the errant firms, CBIC said.</p>.<p>Further, the fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the exchequer.</p>
<p>GST authorities have unearthed a tax racket and arrested one person for allegedly defrauding the government to the tune of about Rs 140 crore through fraudulent means.</p>.<p>The Central Board of Indirect Taxes and Customs (CBIC) in a release said that the Central GST Delhi North Commissionerate has unearthed a racket "involving supply of goods-less invoices and invoice-less goods".</p>.<p>One person has been arrested in the connection and sent to judicial custody for 14 days.</p>.<p>The accused was found to be operating 10 fake firms which were created for rotation of money and fraudulent Input Tax Credit (ITC), thus defrauding the exchequer.</p>.<p>"Prima facie fraudulent ITC of about Rs 140 crore has been passed on using invoices involving an amount of Rs 1,040 crore," it said.</p>.<p>Giving further details, it said the modus operandi of the accused, inter alia, involved obtaining GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Tilak Bazar, Delhi.</p>.<p>On preliminary scrutiny it appears that there is no nexus between inward and outward supplies of the errant firms, CBIC said.</p>.<p>Further, the fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the exchequer.</p>