GST Fraud: Haryana police arrests 89, recover over Rs 112 crore

Chandigarh (Haryana) [India], January 17 : Haryana police have arrested 89 people after busting four major gangs allegedly involved in a Goods and Services Tax (GST) scam and recovered over Rs 112 crore from their possession.
According to an official statement of Haryana police, the gangs defrauded the government exchequer to the tune of over Rs 464.12 crore through fraudulent means across the state. The nexus of these fraudsters were active not only in Haryana but across the country.
Director General of Police (DGP) Haryana Manoj Yadava today said that these persons issued fraudulent invoices to numerous firms and companies without actual supply of goods through fraudulent E-way bills (GST related challans for transporting consignments) and facilitated fake (Income Tax Credit) ITC entitlement on GST portal through GSTR-3B form.
The DGP informed that the major goods involved in these GST invoice scams were scrap, iron and steel articles, cotton-yarn, paper.
Giving details about their modus operandi, the DGP informed that maximum fraudsters in these gangs used to first register fake firms on GST portal in the name of gullible people and then generate fake invoices, bills of these firms by using software apps and then uploading these bills to generate E-way bills on GST portal.
"The maximum number of E-way bills which were generated by these fraudsters were found to be fake on verification by Crime branch. These E-way bills mentioned vehicle numbers related to ambulances, government vehicles, motorcycles, private own vehicles which are contrary to be used for commercial purposes. On further inquiry, the bank account numbers which were shown in GST registration form of bogus firm was also found dubious and the fraudsters used another bank account gateway to deceive authorities," DGP said.
The probe also revealed that they have established these non-existent firms on forged documents like rent agreements, electricity bill, PAN cards. On investigation, it was found that these fake firms had no business premise.
According to the police statement, a total of 21 FIRs against fake firms belonging to the Govind gang active in Panipat and adjoining areas were lodged in year 2019 while other three gangs involved in major GST evasion were booked between 2018 and 2019. Police have so far blocked ITC of these gangs to the tune of over Rs 80 crore in Excise and Taxation Department.
The crackdown on GST fake invoice scam has also led to the recovery of over Rs 112 crore and unearthing fake GST Identification Numbers (GSTIN).
A total of 72 police cases have been filed so far in which 89 accused have been arrested by Crime Branch. Among the total arrest, 40 cases have been registered majorly on three accused namely Govind Sharma, Gaurav, Anupam Singla and Rakesh Arora, police said.