LUCKNOW: Investigation into a tax evasion bid by an Unnao-based man arrested by cyber cell of UP Police for making fraudulent transactions has unearthed a bigger nexus comprising a consortium of 650 fake companies involved in similar fraud.
SP cyber cell Triveni Singh said that during questioning of arrested accused Sanjay Yadav and verification of documents, it has surfaced that a consortium of 650 other fake companies was involved in a similar GST evasion to a tune of Rs 1,000 crore.
"We have also roped in an investigation team of GST where an additional commissioner-rank officer will assist us in zeroing in on the culprits, and also to pin down on the firms gaining advantage from the evasion," said Singh.
The officer also said that preliminary investigation has also revealed that it is a big gang, in which Sanjay is just a cog in the wheel. Bank accounts of his wife are also under scanner, he said.
The officer also said that this fraud also seems to be similar to a case in March, in which issuance of GST invoices of Rs 1,708 crore from a chain of fake firms/companies operating from Delhi, Moradabad and Meerut, involving fraudulent input tax credit (ITC) of about Rs 281 crore had surfaced.
Yadav had launched several companies where no physical movement of goods would take place, but fake invoices were released against the resources and materials used for which a sum of Rs 215 crore ITC was availed. ITC means at the time of paying tax on output, you can reduce the tax already paid on inputs and pay the balance amount.
The modus operandi involved circulation of fake ITC through a chain of non-existent firms by registering them at non-existing addresses. These firms issued fake invoices and ITC was passed on to existing firms for further utilization in GST payment.
"Through a complex data-driven investigation, it was uncovered that 15 firms had filed tax returns from computers with the same IP address. Besides, six firms had the same contact number and four the same email ID," said Singh.
