Central Goods & Service Tax has started physical verification of nearly 300  firms in Haryana state attached with a Noida based racket involved in GST frauds of value worth about 10,000 crore towards service and goods tax. Source reveals that during physical verification of few firms embezzlements of tax amount was detected in nearly 20 firms at Ambala of which the registration of six firms has been cancelled with immediate effect, since these firms were not located at the address intimated in the registration of the firms. According to an officer of sthe ales tax department the verification of nearly 3000 firms have been made in the country so far which include more than 100 firms only in NCR. Investigation reveals that most of the firms in question did sale and purchase on the basis of  fake bills and collected amounts worth crores of rupees towards  input tax credit (ITC) thus cheating the government.

According to information  a racket was detected functioning at Noida in June 2023 which prepared a large number of fake firms in different states, got these firms registered on the basis of fake documents including PAN card,  Aadhar card, Rent Agreement of the premises,  fake Electricity Bills and signatures. These firms purchased and sold goods on the fake bills and also collected  ITC refund of GST. Investigations also revealed that the racket used to attract C class firms and trap them in their net offering a token amount of money and  using their mobile phone number and prepare fake documents on their behalf. During investigation when large scale embezzlements were detected the investigation officers recovered 2660 fake GST forms, fake Aadhar cards, computers and datas of countless number of parties from them.

CGST officers during investigation recovered datas which was shared with all four Commissioners in Haryana state at Gurugram, Rohtak, Faridabad and Panchkula when officers of the department started search for all these registered dealers in their area as exposed from the aeized record of Noida based racket as regard sale-purchase of goods, Sales Tax return filed by them and Income Tax Credit (ITC) collected by them and during investigation maximum number of firms were found fake and does not exist at their addresses.  CGST Commissioner Shikha Deep Randhawa said that the racket caught at Noida has disclosed names of large number dealers registered with GST and majority of them were found fake having no existence, however, the department is sending recovery notices to many made fake sale and purchase tof bills to collect ITC.