Five individuals were jailed on Saturday for presumably running a GST bogus billing network in Punjab and other states, an official statement stated here. The statement stated the scam could be around Rs 700 crore.
Officials of the investigation wing of the Punjab State GST Department arrested five persons for developing and operating a bogus billing network throughout different states, including Punjab, Delhi and Haryana, it stated.
Providing details of the modus operandi, the statement stated the accused utilized to pass on fake input tax credit to different firms without due payment of tax to the government.Search and seizure operations were conducted at multiple locations in Khanna of Punjab by groups of the department to gather proof for developing the method operandi that likewise included developing firms handling copper scrap and hosiery items.The input tax credit developed through fake firms was used to support the regional motion of goods of various traders.The department got alert about the network after a car carrying copper scrap was apprehended by its officials in Jalandhar last year and examination had actually revealed that the products had actually been acquired in your area while e-way and invoice were produced from some other firm.”In-depth investigation revealed a network of 44 firms spread out throughout states that was being utilized to produce the bogus ITC for setting off the tax liability developing out of purchases made from local unregistered dealerships. On being challenged with the evidence, the primary kingpin accepted that he was running the network with the assistance of some other accomplices some of whom have likewise been arrested.During search operations incriminating files connected to different firms and cellphones utilized for sharing phony invoices and e-way bills created were seized. The total fake billing by the network is most likely to be more than Rs 700 crore while ITC created/availed and tax averted is more than Rs 122 crore. Proof was likewise collected about numerous beneficiaries of the phony network and other accomplices involved,” according to the statement.The implicated were produced before the duty magistrate and were sent out to judicial custody for 14 days. The individuals jailed were determined as Vinod kumar, Maninder Sharma, Sandeep Singh Amarinder Singh and Sunny Mehta, the statement said.All the accused belong to Khanna town of Ludhiana district. A hunt is on to catch other accused, it said.Action versus numerous recipients and other accomplices is likewise being initiated. Information of the companies signed up in the names of the implicated and other persons outside Punjab is being assembled and will be shared with other states for needed action. Additional investigation is going on, it stated.