Fake GST invoices racket busted in Pune by CGST Commissionerate
Mar 18, 2021
Pune (Maharashtra) [India], March 18 : The Commissionerate of Central Goods and Services Tax (CGST), Pune II, has arrested a managing director (MD) of a private company in connection with an alleged racket of issuing fake GST invoices without receipt or supply of services.
The accused has been identified as Sanjay Sheshrao Gaikwad, who was arrested on March 16 by a team of Headquarter Preventive Unit under sections of 132 (1) (b) and (c) of the CGST Act, 2017. He was later remanded in judicial custody for 14 days by a court in Pune.
"Gaikwad is MD of 'M/s Sigma Techinfra Solutions Private Limited', which is registered in GST for supplying of services of Manpower. The CGST commissionerate officials have busted the company's modus operandi of issuing fake GST invoices without receipt or supplying any services," CGST said in a press statement.
"Investigation was initiated against the said company for issuance of fake GST invoices of approximately Rs 66 crores including GST of Rs 12 Crores to facilitate bogus Input Tax Credit (ITC) claims and dupe the Government Exchequer," it said.
CGST further said that the accused was a part of a racket involving issue of fake GST invoices to claim fraudulent input tax credit (ITC) from the government without any receipt or supply of services.
"As per GST laws, ITC can be availed only against taxes paid to the government on receipt of goods or services. However, M/s Sigma Techinfra Solutions (I) Private Limited took work orders from various prominent companies and sub contracted the same work to non-existent companies who exist only on paper and thus availed ITC on bogus invoices and passed on the same to prominent companies without actual receipt/supply of services," it added.
CGST said that the search was conducted at different premises of the company in Pune and Mumbai. The statement of the accused was also recorded who has admitted to this modus operandi.
Further investigation in the matter regarding the involvement of other firms and financial transactions between these firms are in progress.
