Two persons were jailed in Raipur city on Tuesday for creating fake firms and fake input tax credit (ITC) of Rs 5.92 crore by generating bogus invoices.
A joint team of the Central Goods and Services Tax (CGST) and Central Excise departments searched the premises of different firms in the city for their involvement in evasion of GST, an official statement said.
The departments had information that Radha Construction, Ayaz Khan, MantuKazi, Disha Traders and Mukesh Trader were involved in evasion of GST, it said.
A probe revealed that Manoj Kumar Valecha and Sparsh Soni had created a web of fake firms through which they generated fake invoices and passed on fake ITC of Rs 5.92 crore without supplying any goods and services, the statement said.
They were arrested under the CGST Act 2017, it added. A court sent them to prison.