Uttar Pradesh: GST fraud of 134 crores! This scam was run from a rented room, the young man became a millionaire while sitting, took away 134 crores from the government’s account, read the whole matter
The team of Central GST (CGST) and Central Excise has revealed the GST fraud of 134 crores in Agra. The team has busted a module involved in the business of fake firms, which issue invoices without supply of goods and send money through personal current bank accounts using the names of others.
Along with this, many objectionable documents including copies of fake invoices issued on the letter heads of several firms, checkbooks, bank passbooks, rubber stamps and mobile phones have also been recovered. At the same time, Akshay Goyal, the mastermind of the fraud, has been arrested. In the investigation, Akshay has confessed to the crime.
What was the modus operandi
According to a press note issued by the office of the Commissioner of CGST and Central Excise, Agra, the modus operandi of this racket is to initially set up fake firms using PAN and Aadhaar numbers of family members, employees and friends. is created and then a complex network of transactions is created without supply/movement of goods. The entire racket revolves around circular trading and passing on Input Tax Credit (ITC) to different customers as per their requests without actual supply of goods. This mainly allows other taxpayers to wrongly avail and utilize ITC without any physical movement of goods and payment.
The mastermind lived in a rented house
Akshay Goyal, the mastermind of the modus operandi, is a native of Bhairon Bazar near Belanganj Tikonia. He was living on rent in Kamla Nagar.
According to Central GST Commissioner Sharad Srivastava, this racket used to create fake firms through the PAN card and Aadhaar card of his friends and family members. Apart from this, these people used to take money in lieu of selling fake bills. He told that together they had made about 227 fake farms. In lieu of this, fake invoices covering items like iron scrap, cement, tiles, marbles worth more than 755 crores were issued. The same issued illegal and ineligible ITC worth about Rs 134 crore.
