Two arrested for fake GST invoices

The anti-evasion unit of the Secunderabad commissionerate, Commissioner of Central Tax, Central Excise & Service Tax, on Friday booked cases against two persons for generating fake invoices and evading GST of crores of rupees.

According to the officials, the accused, Kutbuddin Junaghadwala and Aliasger Junaghadwala, created non-existent firms and issued invoices without supplying goods or services, facilitated lent availment of input tax credit (ITC) and evaded GST on the transactions of certain firms.

“They have floated many firms either directly by them or with the help of known persons. These firms passed on input tax credit based on fake/bogus invoices,” officials said.

“Our investigations have revealed that National Hardware Trading Company, Platinum Trading Syndicate, Marvel Industrial Corporation,

Jupiter Trading Company, B.I Enterprises have issued fake GST Invoices/ewaybills and facilitated in passing of ineligible ITC to the tune of `14.20 crore and evaded payment of GST in respect of transactions made in the name of Frontline Enterprises and Universal Enterprises to the tune of `3.15 crore,” said the officials.

Investigations revealed that the two had a pre-planned conspiracy aimed to dupe the exchequer by creating a complex web of interconnected firms engaged in fraudulent issuance of tax invoices without supply of goods or services to enable the recipient companies to avail and utilise fake ITC, leading to loss of government revenue.

Kutbuddin and Aliasger Junaghadwala have accepted their involvement and their statements were taken up before placing them under arrest on Tuesday. They were produced before the economic offences court on Wednesday and were remanded to judicial custody up to January 25.