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Fraud in fake invoices for Rs. 83 crore detected, two arrested

Fraud in fake invoices for Rs. 83 crore detected, two arrested

Mangalore Today News Network

Mangaluru, June 10 2019: A team of officials of the Anti-Evasion Wing at Mangalore Central GST Commissionerate have busted a fake invoices fraud worth Rs. 83 crore. They arrested two persons in this connection on Sunday.


Fraud.jThe names of the arrested persons were given as P.K. Abdul Raheem, proprietor of Thouheed Scrap Dealer, and Abdul Khadar Kuloor Chayebba, proprietor of M.K. Traders.

A case against creating fake invoices and evading GST has been filed against the two firms, Dharam Singh, Commissioner of Central GST, Mangaluru, said in a release on June 9,  Sunday.

The firms had taken fraudulent input tax credit based on fake invoices received from different firms/entities, without actual receipt of goods.

“The fraudulent input tax credit taken was utilised by them for evasion of GST payable by them on their supplies of metal scrap, procured from local unregistered dealers without payment of GST, to the manufacturers of aluminium/MS/copper-rods/ingots/ castings, etc. They are also involved in raising fake invoices to transfer fake input tax credit further in the fake invoice chain,”  GST official Singh said.

“The total amount of fraudulent input tax credit taken and utilised based on the fake invoices by Thouheed Scrap dealer and M.K. Traders is approximately Rs. 15 crore and the total value of goods involved in the case is approximately Rs. 83 crore,” the release said.

They have been booked under Section 132 of the CGST Act and arrested under Section 69 of the Act.  Investigation is on to trace further leads to identify other firms involved in the fake invoice racket, GST Commissioner Singh indicated.

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