GST Fraud Racket Busted in Lucknow: ₹2.11 Crore ITC Siphoned Off

GST Fraud Racket Busted in Lucknow: ₹2.11 Crore ITC Siphoned Off

The article reports that tax enforcement agencies in Lucknow busted a major Goods and Services Tax (GST) fraud racket involving a fake company that had illegally siphoned off ₹2.11 crore in Input Tax Credit (ITC) from the government.

Key Details of the Fraud

• Fraud Amount: The core of the scam involved the fraudulent availment and utilization of ₹2.11 crore in Input Tax Credit.
• Modus Operandi: The perpetrators set up a fake company using forged papers and documents. This shell entity was then used to issue fake invoices for goods or services that did not actually exist or were never supplied.
• Enforcement Action: The racket was identified during an official raid conducted by the tax department. The prompt detection and bust highlight the intensified focus of authorities on eliminating fake billing scams, which are a major source of revenue leakage under the GST regime.
• Legal Consequence: Criminal and prosecution proceedings were initiated against the individuals involved in orchestrating the fraud.