GST officers busted a network of firms dealing in fake invoices

CBIC officers said that the Goods and Services Tax officials have used fake invoices and busted two networks of firms involved in this fraud.

The CBIC on Monday sent a letter to the state who the officials are saying that the Goods and Services Tax authorities used fake invoices and busted two networks of firms involved in tax fraud, out of which one person has also been arrested. (DGGI) searched several premises in Punjab, Himachal Pradesh, and Haryana and busted a network of 16 farms, which unearthed fake invoices meant to pass on tax credit of over Rs 115 crore.

In a separate operation, the Central GST officials of Gujarat found a trap consisting of 19 firms and claimed tax refunds based on fraudulent challans showing tax credits. And the total tax credit, in this case, is about Rs 52 crore. CBIC has said that one person has been arrested and further investigation is still going on. Recently the GST authorities have tightened enforcement of tax compliance based on extensive usage data analytics and intelligence from various other regulatory agencies including the Customs and Income Tax Department.

The compliance enforcement campaign in recent months has helped increase GST receipts. The GST collections of the central and state governments have remained above ₹1 trillion since last October. In recent months, the government has tightened the tax credit rules as well as the reporting requirements to improve tax compliance. Many small businesses are also now demanding relaxation in compliance given the low availability of manpower during the second wave of the pandemic.

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