The Central Goods and Services Tax (CGST) department , Ranchi, has unearthed an alleged ₹300 crore scam wherein firms, mainly from Chhattisgarh and Odisha, used fake bills and invoices generated by shell companies registered in Jharkhand for tax evasion, officials said on Thursday.
As per CGST officials, they have identified atleast 19 such shell firms–barring one registered on a fake Ranchi address–which were used by firms in neighbouring states to raise fake bills and invoices to claim input tax credit (ITC).
“Analysis of the firms showed that fake bills and invoices raised from these firms were used to transfer ITC (Input Tax Credit ) to other firms. During probe, it was found that seven firms were registered on the same address, while other five were registered on the same address at another location. The rest also had fake addresses. In total, these 19 firms were used to issue fake bills and invoices worth ₹294 crore,” said SK Singh, principal commissioner.
Officials said most of the aforementioned firms dealt in coal and scrap in Chhattisgarh and Odisha.
“We have informed our counterparts in those states to realise the due tax from these firms. The exercise was a part of nationwide effort to identify tax evasions. From April to June this year, the department has realised ₹7,000 crore across the country, wherein firms were using the same modus operandi to evade tax,” a senior official of the department said.
On possible action against people running the shell companies for a possible commission, officials said there are penal provisions in the Act itself and they would act accordingly after investigation.
