<p>New Delhi: Meerut Central Goods and Services Tax (CGST) Commissionerate on Thursday busted a syndicate that fraudulently claimed Input Tax Credit of over Rs 1,000 crore through a network of 232 fake firms and arrested three persons.</p><p>The Anti-Evasion branch of Meerut Commissionerate CGST started an investigation in October 2023 into a large syndicate that fraudulently claimed ITC by way of fake billing, an official statement said.</p><p>The investigation conducted so far has revealed that a total number of 232 fake firms, with 91 firms registered on a single mobile number, are registered at various places across the country and have passed inadmissible ITC of around Rs 1,048 crore, it said.</p>.Delhi HC upholds validity of anti-profiteering provision of CGST Act, says it promotes consumer welfare.<p>The total value of goods shown to be supplied through these firms is around Rs 5,842 crore, it said.</p><p>Through the use of various analytical tools such as E-way Comprehensive Portal, Advait and Business Intelligence and Fraud Analytics (BIFA), the CGST Commissionerate carried out a deeper investigation, it said.</p><p>During the course of the investigation, it came to light that ‘Full Fledged Money Changer Companies’ (FFMCs) were used for parking/routing of funds generated through fraudulently passed on ITC, it said.</p><p>Further investigation revealed bulk purchases of around Rs 1,120 crore from two of such FFMCs from other FFMCs, it said.</p><p>However, it said, no record of further disposal/receipt of said foreign currency has been recovered during searches.</p><p>Owners/ Directors of these two FFMCs, too could not produce any record or details of the ultimate recipient of the foreign currency, it added.</p><p>Five bank accounts that were used to park the proceeds by the syndicate have been provisionally attached, it said.</p><p>Three persons have been arrested so far for being perpetrators and conspirators in the creation of fake firms/ preparation of fake invoices without the supply of any underlying goods/services/ passing on of fraudulent ITC to various beneficiaries/ retaining of benefits arising out of the proceeds of GST evasion, it said.</p><p>Further investigation is underway, it added.</p>
<p>New Delhi: Meerut Central Goods and Services Tax (CGST) Commissionerate on Thursday busted a syndicate that fraudulently claimed Input Tax Credit of over Rs 1,000 crore through a network of 232 fake firms and arrested three persons.</p><p>The Anti-Evasion branch of Meerut Commissionerate CGST started an investigation in October 2023 into a large syndicate that fraudulently claimed ITC by way of fake billing, an official statement said.</p><p>The investigation conducted so far has revealed that a total number of 232 fake firms, with 91 firms registered on a single mobile number, are registered at various places across the country and have passed inadmissible ITC of around Rs 1,048 crore, it said.</p>.Delhi HC upholds validity of anti-profiteering provision of CGST Act, says it promotes consumer welfare.<p>The total value of goods shown to be supplied through these firms is around Rs 5,842 crore, it said.</p><p>Through the use of various analytical tools such as E-way Comprehensive Portal, Advait and Business Intelligence and Fraud Analytics (BIFA), the CGST Commissionerate carried out a deeper investigation, it said.</p><p>During the course of the investigation, it came to light that ‘Full Fledged Money Changer Companies’ (FFMCs) were used for parking/routing of funds generated through fraudulently passed on ITC, it said.</p><p>Further investigation revealed bulk purchases of around Rs 1,120 crore from two of such FFMCs from other FFMCs, it said.</p><p>However, it said, no record of further disposal/receipt of said foreign currency has been recovered during searches.</p><p>Owners/ Directors of these two FFMCs, too could not produce any record or details of the ultimate recipient of the foreign currency, it added.</p><p>Five bank accounts that were used to park the proceeds by the syndicate have been provisionally attached, it said.</p><p>Three persons have been arrested so far for being perpetrators and conspirators in the creation of fake firms/ preparation of fake invoices without the supply of any underlying goods/services/ passing on of fraudulent ITC to various beneficiaries/ retaining of benefits arising out of the proceeds of GST evasion, it said.</p><p>Further investigation is underway, it added.</p>