The intelligence wing of Central GST, Rourkela office unearthed a racket that reportedly is engaged in generating fake invoices in the name of fake traders and passing on the same to different manufacturing units of different parts of the country to avail input tax credit(ITC), thereby resulting in revenue loss of over crores of rupees to the exchequer.
Significantly, the racket has been luring innocent citizens, like unemployed or semi employed persons, with the promise of earning of a sound income and has been drawing fake invoices, using their Aadhaar and PAN card.
Sources said acting on the inputs from some sources about practice of drawing fake invoices to the tune of crores of rupees from Rourkela, the GST intelligence wing swung into action and started an investigation.
During the investigation, the whole irregularities came to light. It was found that a majority of these transactions have been done for trading steel items and cement. Interestingly, different vehicles numbers were put in these invoices, in which the materials were dispatched. During investigation, it was revealed that the vehicle numbers mentioned were of two-wheelers and private vehicles.
According to sources, several raids were conducted by the intelligence wing of GST in the States of Maharashtra and Gujarat and got confirmed that these companies have availed the input tax credit against these fake invoices.
“Since these companies have confessed about availing input tax credit against fake invoices, we have initiated reversal of the credit, due to which about Rs 2.5 crore has come back to the exchequer,” said Senior Intelligence Officer Intelligence wing of GST, Rourkela GC Bahubalendra.
Investigating further into the case, the intelligence wing came to know that the fake transactions have been done in a planned manner in the name of poor and innocent individuals of Rourkela city.
“The persons involved in the racket lured unemployed and low paid employees, like private tutors, house wives, artists and students etc with a monthly income of Rs 8,000 to Rs10,000 and use their Aadhar and PAN card to open trading houses in their name, for facilitating the fake transactions,” said Bahubalendra.
“During interrogation, it had come to light that although transactions worth crores of rupees have been shown in the firm’s name, these individuals had absolutely no idea about that since every documents were kept by the operators,” he added.
“I was promised of Rs 5,000 to Rs10,000 per month by one person for handing over my Aadhaar and PAN cards for an online trading activity, but I came to know about this unfair practice, when I was questioned by the GST officials,” said a housewife. “Transaction of crores of rupees through fake companies and transferring the input tax credit to manufacturing units is absolutely unlawful and also leading to loss to the State and national exchequers in crores,” said Assistant Director, Central GST Intelligence wing, Rourkela, Amitendra Sonal.
“We have already identified the persons involved in the act and they would soon be booked under section 132 of GST Act.,” Sonal said. “Besides, I would also appeal to all that don’t hand over your personal documents like Aadhar and PAN etc to anybody, as the same may be misused,” Sonal added.