CGST's Anti-Evasion Wing busts Rs 241 cr GST fraud racket

New Delhi: The Anti-Evasion wing of the Central GST Delhi South Commissionerate has busted a racket of fake invoicing and GST fraud of hundreds of crores and arrested a key accused in the case, officials here said, adding that the racket was involved in fake invoicing worth Rs 1,600 crore and tax evasion of Rs 241 crore. Officials here said that this racket had led to the discovery of a new modus operandi used in defrauding the exchequer by exploiting the facility of refunds given for inverted duty structure. The CGST Commissionerate has said that so far 120 entities involved in the racket have come to light.

The investigation in the case has unearthed a well-organised racket of creating bogus firms, issuing fake invoices and bogus e-way bills to generate and encash tax credits, the agency said in the statement.

Officials here added that the main culprit was arrested on Thursday and produced before a judicial magistrate, who then remanded him to 10 days in judicial custody.