CBI Raids in Bihar, Jharkhand ₹100 Crore GST Fraud Uncovered
The CBI raids in Bihar and Jharkhand have exposed a massive ₹100 crore GST fraud involving fake invoices and suspect customs officers. This incident highlights how tax evasion rings exploit loopholes and why honest taxpayers must stay alert.
What Happened?
- The Central Bureau of Investigation (CBI) conducted searches at multiple locations.
- Fake firms were allegedly created to generate bogus invoices.
- GST credits were fraudulently claimed without actual supply of goods.
- Customs officers are also under the scanner for possible collusion.
Official Source: CBI Press Release and news reports based on FIR details.
How Such GST Frauds Typically Work
- Fake Companies: Shell firms are registered using fake IDs.
- Input Tax Credit (ITC): Fraudsters claim ITC refunds using these fake transactions.
Legal Action & Next Steps
- Offenders face action under Section 132 of CGST Act (serious fraud).
- Penalties include jail terms up to 5 years and hefty fines.
Expert Tip: How to Avoid Unknowingly Becoming Part of Fraud
Chartered Accountant Advisory:
Always verify your vendors’ GSTIN on the GST Portal. Claim input credit only for genuine invoices. Maintain clear records — this protects you during GST audits.
CBI Raids Bihar, Jharkhand: Key Takeaways
| Points | Details |
|---|---|
| Fraud Value | ₹100 crore fake ITC claims |
| States Raided | Bihar and Jharkhand |
| Modus Operandi | Fake invoices, shell firms |
| Officers Involved? | Customs officers under probe |
| Penalty Law | Section 132 of CGST Act |
| Prevention Tip | Vendor GSTIN check mandatory |
Frequently Asked Questions (FAQs)
Q1: What happens if I unknowingly buy from a fake firm?
You may lose input credit and face tax demands. Always verify before purchase.
Q2: Which law punishes GST fraud?
Section 132 of the CGST Act deals with severe fraud and can lead to imprisonment.
Q3: Where can I check if a vendor is genuine?
Check GSTIN status and filing history on GST Portal.
Efiletax Expert Support
Stay safe — Efiletax helps you verify vendors, file GST accurately, and avoid penalties. Contact us for a compliance check today!
Summary
CBI raids in Bihar and Jharkhand have busted a ₹100 crore GST fraud involving fake invoices and suspect customs officers. Learn how these scams work, the penalties under Section 132 CGST Act, and how you can protect your business with smart GST practices.