ED conducts searches across three states in Rs 100-crore fake ITC fraud case

Key Highlights

• Investigation revealed that the firm had fraudulently issued a total of 15,258 bogus invoices with a taxable value of Rs 658.55 crore within a span of six months to 58 recipient entities registered across 11 states, during the period from October 2023 to March 2024.
• These fraudulent invoices facilitated the wrongful availment of fake ITC amounting to approximately Rs 99.31 crore by the said entities during FY 2023–24.
• During the searches, it was found that Dayal Commercial, Apee Enterprises, Phoenix Hydraulics, Ram Awatar Bansal & Co., and Bhima Shankar Industries, having their principal place of business in Kolkata, were solely engaged in generating bogus bills and passing on fake ITC.
• These entities generated fake bills worth Rs 450 crore along with corresponding fraudulent ITC claims by fabricating records of vehicle manufacture and sales through bogus invoices.
• They also fraudulently claimed GST refunds, which were siphoned off and shared among promoters, suppliers and professional facilitators.