Officers of the Anti-Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East), have busted a major racket of generation of huge inadmissible input tax credit (ITC) through fake billing of Rs 1,278 crore. The well-established syndicate was being operated by floating seven different fake firms with the intent of passing of inadmissible credit to the tune of Rs 137 crore. Searches were conducted in more than nine places spread over different locations in Delhi and Haryana to identify the taxpayers, who were defrauding the government of its legitimate taxes. The modus operandi of the fraudulent taxpayers includes bogus invoices/bills creation, without actual movement of goods. All the e-way bills generated to transport the goods were fake.
The mastermind of the racket, Ashish Aggarwal, was arrested under Section 132 of the CGST Act on October 29 and remanded in judicial custody.
The primary beneficiary firm of this bogus billing network was Maya Impex, which has been registered in the name of Ashish Aggarwal’s 66-year-old mother through which fake ITC of Rs 77 crore has been passed on. Ashish Aggarwal knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017. The fake billing operation was primarily engaged in generating and passing off fake ITC primarily to the milk products industry. Bogus invoices were raised against the fictitious sale of milk products such as ghee, milk powder etc. Major brands like Milk Food were major beneficiaries of this inadmissible credit. During the course of search operations, a huge quantum of incriminating documents pertaining to this racket was recovered.