Racket supply registration#

Therefore, the accused has committed offenses under the provisions of Section 132(1)(a), (b) and (c) of the CGST Act 2017, which are cognizable and non-bailable under Section 132(5) being punishable under Section 132(1)(i) of the said Act. Further, the said fake firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the Exchequer. On preliminary scrutiny, it appears that there is no nexus between inward and outward supplies of the errant firms.

Racket supply registration#

The modus operandi of the accused, inter alia, involved obtaining GST registration of fake firms using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Tilak Bazar, Delhi.

Prima facie fraudulent ITC of about Rs 140 crores has been passed on using invoices involving an amount of Rs 1,040 crores. The accused was found to be operating 10 fake firms that were created for rotation of money and fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer. One person has been arrested and remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), New Delhi at Patiala House Courts. Central GST Delhi North Commissionerate has unearthed a racket involving the supply of goods-less invoices and invoice-less goods.