Lid off fake billing scam worth Rs 70 cr
The Excise and Taxation Department has unearthed the biggest-ever fake billing scam in Chandigarh ever since the implementation of the Goods and Services Tax (GST). While the department has identified five bogus firms under its jurisdiction for their alleged involvement in the scam worth around Rs 70 crore, it has also detected 15 more firms falling under the Central GST Department. It has also identified 132 firms registered on bogus addresses. The department is now in the process of writing to the police to file an FIR against the five firms.
Sources said the five firms generated fake bills to fraudulently claim the input tax credit (ITC). The bogus bills were used to fraudulently claim the ITC from the department without the actual movement of goods. the sources said the firms involved in the racket obtained GST registration. Using the registration, the fake movement of goods was shown and bogus purchase invoices were generated. These bills were sold at a lump sum amount to actual traders, who not only purchased goods from the grey market to claim the ITC illegally, but also evaded taxes.