Ranchi: The Central Goods and Service Tax (CGST) department has unearthed scam worth Rs 300 crore in which companies used fake bills and invoices to generate input tax credits (ITC).
The CGST said in a press statement that fake ITCs were transferred to other companies which used them to claim undue tax benefits from the government on their products. This led to a revenue loss of 26.51 crore to the government.
The irregularities were detected during data analysis of 17 firms based in Jharkhand. During inquiry it was found that five firms had one address while another group of seven firms also had a single address. Further verification revealed that all these firms did not have an office at the given addresses. Furthermore, the addresses of several other firms were found to be wrong.