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GST Fraud: How Scammers Floated Over 650 Shell Companies To Evade Tax Of Rs 1915 Crore



GST Fraud: How Scammers Floated Over 650 Shell Companies To Evade Tax Of Rs 1915 Crore

LUCKNOW: Since the implementation of the Goods and Services Tax (GST) system in July 2017, bogus billing frauds have continued to bleed government revenues.

UP Police probing the case claim that state GST officials discovered fraudulent billing transactions of Rs 1915 crore.

According to UP Cyber Crime officials, they discovered a Rs 1915 crore fake GST billing scheme extending across over 650 fictitious organizations.

According to officials, the enterprises accused of tax evasion engaged in circular trade and generated Fake invoice in order to claim the fraudulent input tax credit and escape taxes.

UP Cyber police claim that they have arrested a scammer who has been identified as Sanjay Singh Yadav.

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According to police, the complete tax evasion investigation revealed that over 650 shell businesses were involved in various crimes that resulted in the theft of Rs 1915 crore from government coffers through bogus claims for input tax credit (ITC).

The state government and the Centre are implementing regulatory measures to close loopholes, but the continually changing mode of operation has only resulted in an increase in the number of incidents reported year after year.

According to officials, the companies would produce forged or exaggerated invoices while providing no items. Cash was used to settle all unaccounted transactions.

Sanjay Singh Yadav, man arrested in GST fraud.

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To combat GST evasion, the government made e-way bills essential for transportation. This aided the agency in obtaining information about each purchase. Scammers devised a means for transporting things by manipulating system and generate fake e-way bill. They intended to conceal the true identities of the parties involved.

Scammers set up phoney businesses. To receive OTP in the online process, a mobile number and an e-mail address were used. Many businesses used the same phone number and email address. Scammers used the names of shell firms to represent fake purchases and transactions in order to escape GST in the millions of rupees and causing a loss to state exchequer

According to SP Cyber Crime Triveni Singh, when these fake firms were physically verified, fraud was discovered.

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