A press release issued by the headquarters, preventive wing Pune II of the Central GST commissionerate, stated that two people have been arrested in this connection.
The Pune office of the Central GST commissionerate has unearthed an alleged ‘Rs 700 crore racket’ that provided fraudulent GST invoices to companies to claim input credit.
A press release issued by the headquarters, preventive wing Pune II of the commissionerate, stated that two people have been arrested in this connection.
Companies avail input tax credit for goods purchased or services rendered by them. However, according to the commissionerate, the racket in question involved issuance of fake invoices that helped companies claim such credit without doing either of the two.
The press release named two Pune-based companies in this connection. These firms, the press release alleged, had obtained GST registrations and issued invoices worth Rs 700 crore, of which the GST component alone came to about Rs 54 crore. Bogus Eway bills and LRs, the press release stated, were issued to sustain the claims.
During the search operations, incriminating documents were seized and two people — Ashok Thepde and Vilas Atal — were arrested in this connection, stated the press release.
Source- Indian Express.