The Delhi government has cancelled the GST registration of 1,282 traders who were found to be involved in the issuance of fake invoices.
The Department, through GST inspectors, has conducted field verification and inspection of 16,141 suspicious dealers so far. Of them, 4,618 dealers were found to be non-existent and bogus.
These dealers are non-existing/bogus dealers who got registration in GST to defraud the government exchequer by issue and use of fake invoices.
A large number of GST fraud cases involving the use of fake invoices for wrong availment of input credit, which is further used to pay GST on outwards supplies has been detected.
The purpose of use of such fake invoices is the fraudulent availment/encashment of input tax credit.