{"id":220637,"date":"2019-10-09T17:45:03","date_gmt":"2019-10-09T12:15:03","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=220637"},"modified":"2019-10-09T16:16:55","modified_gmt":"2019-10-09T10:46:55","slug":"two-persons-arrested-for-involving-in-fake-invoices-racket-fraudulently-availing-input-tax-credit","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/09\/two-persons-arrested-for-involving-in-fake-invoices-racket-fraudulently-availing-input-tax-credit\/","title":{"rendered":"Two persons arrested for involving in fake invoices racket &#038; fraudulently availing Input Tax Credit"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana has arrested two persons who were found involved in fake invoices racket having a taxable value of Rs 931 crore and fraudulently passing\/ availing Input Tax Credit (ITC) amounting to Rs 127 crore through a complex web chain of various entities.<\/strong><\/p>\n<p style=\"text-align: justify;\">Many of these entities were under their control and they also formed separate entities in the name of their employees\/ dummy persons and generated fake invoices without actual movement of goods, namely ferrous\/ non-ferrous scrap, ingots, nickel cathode, etc., thereby causing loss to exchequer by evasion of GST. They availed this fraudulent ITC to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer. During the course of the investigation, their employees\/ dummy persons admitted to having no knowledge of the movement of the above-mentioned goods.<\/p>\n<p style=\"text-align: justify;\">Thus, the said persons have committed offences under the provisions of Section 132(1)(b) &amp; (c) of the Central Goods &amp; Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017.<\/p>\n<p style=\"text-align: justify;\">Consequently, the two were arrested on 07th October, 2019 under Section 69(1) of the CGST Act, 2017 and produced before Judicial Magistrate in Gurugram Court on 07th October, 2019. Court has sent them to judicial custody till 19th October, 2019. Further investigation in the matter is in progress.<\/p>\n<hr \/>\n<p><strong>Ministry of Finance<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Press Release dt. 09-10-2019]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana has arrested two persons who were found involved in fake invoices <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[37862,26374,37863],"class_list":["post-220637","post","type-post","status-publish","format-standard","hentry","category-hot_off_the_press","category-news","tag-fake-invoices-racket","tag-input-tax-credit","tag-section-1321b-c-of-central-goods-services-tax-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Two persons arrested for involving in fake invoices racket &amp; 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effective functioning of GST regime&#8221;","author":"Bhumika Indulia","date":"August 1, 2020","format":false,"excerpt":"Orissa High Court:\u00a0S.K. Paigrahi, J., while addressing a matter, observed that, One cannot lose sight of the fact that GST regime is relatively new and is still evolving. \"...attempts to dampen the spirit of GST proper implementation are already assuming huge proportions and need to be curbed with an iron\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":218569,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/08\/23\/jhar-hc-s-186-of-jvat-act-2005-does-not-contemplate-production-of-jvat-404-forms-as-a-mandatory-condition-for-availing-benefit-of-itc\/","url_meta":{"origin":220637,"position":2},"title":"Jhar HC | S. 18(6) of JVAT Act, 2005 does not contemplate production of JVAT-404 Forms as a mandatory condition for availing benefit of ITC","author":"Bhumika Indulia","date":"August 23, 2019","format":false,"excerpt":"Jharkhand High Court:\u00a0A Division Bench of H.C. Mishra and Deepak Roshan, JJ., set aside the impugned orders and directed the Assessing Authority to re-examine the claim of the petitioner in view of original tax invoices. The facts of the case were that the petitioner has claimed Input Tax Credit (ITC)\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":209557,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/02\/06\/naa-dominos-pizza-india-operator-found-guilty-of-not-passing-gst-benefit-to-customers-issued-incorrect-invoices-and-illegally-earned-rs-41-42-crores\/","url_meta":{"origin":220637,"position":3},"title":"NAA | Dominos Pizza India operator found guilty of not passing GST benefit to customers \u2013 issued incorrect invoices and illegally earned Rs 41.42 crores","author":"Bhumika Indulia","date":"February 6, 2019","format":false,"excerpt":"National Anti-Profiteering Authority (NAA): The coram\u00a0chaired by B.N. Sharma (Chairman) and comprising J.C. Chauhan, R. Bhagyadevi and Amand Shah as technical members found the operator of Domino\u2019s pizza chain in India guilty of offence under Section 122 of the Central Goods and Services Tax Act, 2017 (CGST Act) by illegally\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/02\/NAA.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":364394,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/21\/tamil-nadu-aar-rejects-auto-color-paints-itc-refund-adjustment-request\/","url_meta":{"origin":220637,"position":4},"title":"Read why AAR Tamil Nadu refused to admit Auto Color Paints\u2019 application for refund and Input Tax Credit adjustment over erroneous GST reporting","author":"Editor","date":"October 21, 2025","format":false,"excerpt":"In the present case, Auto Color Paints mistakenly reported purchase invoices as sales in GSTR-1 from 2017\u201418 to 2022\u201423, resulting in a loss of Input Tax Credit amounting to \u20b918.53 lakh. After the supplier refused adjustment, the applicant approached AAR, Tamil Nadu, seeking relief under Section 97 of the CGST\u2026","rel":"","context":"In &quot;Advance Rulings&quot;","block_context":{"text":"Advance Rulings","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/aar\/"},"img":{"alt_text":"Auto Color Paints&#8217; ITC refund","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Auto-Color-Paints8217-ITC-refund.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":223391,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/19\/38th-gst-councils-decisions-regarding-law-and-procedure-related-changes\/","url_meta":{"origin":220637,"position":5},"title":"38th GST Council\u2019s decisions regarding Law and Procedure related changes","author":"Bhumika Indulia","date":"December 19, 2019","format":false,"excerpt":"The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman. The meeting was also attended by the Union Minister of State for Finance & Corporate Affairs Anurag Thakur\u00a0 besides Finance Ministers of States & UTs and senior officers\u2026","rel":"","context":"In &quot;Hot Off The Press&quot;","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"AAR","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/image-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/image-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/image-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/image-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/image-2.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/220637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=220637"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/220637\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=220637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=220637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=220637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}