The officers of Central Goods and Services Tax (CGST) Commissionerate, Delhi East have unearthed a network of fictitious firms used by their operator to generate and pass on fake Input Tax Credit (ITC) of Goods and Services Tax (GST). The network of fake firms was being operated by one Vishal, who is an advocate by profession and was practicing law in Karkardooma Court, Delhi.
Vishal started this GST fraud by creation of a fictitious firm in his own name which he got registered at his residence. Subsequently, he arranged various KYCS of different persons to create multiple fictitious firms having no business activity and created solely for the purpose of passing on fake Input Tax Credit and defrauding the Government exchequer.
Multiple KYCS and cheques were resumed during the search of his residence. He used to pass on fake Input Tax Credit to his clients in exchange for a commission of 2 % of the invoice amount. The total fake Input Tax Credit passed on quantified so far is Rs. 50.03 crore which is expected to investigation increase as the progresses.