Goods and Services Tax Act does not define 'Fake Invoicing.' However, the general understanding means invoices against which actual supply has not been made or supplies against which invoices have not been issued and alike.
Recently, the department has been very vigilant on such fraudulent transactions. Specific actions can lead to raising of suspicion by the department like multiple registrations on a single address or PAN, the mismatch between invoice and actual transaction, the mismatch between transporter details in the e-way bill and precise, standard contact details for multiple registrations, the mismatch between parties in invoice and as declared in return, etc.
There are certain sections introduced to prevent fraudulent Availment of ITC and instances of Fake Invoicing:
Department may resort to the following to identify cases of fake invoicing during an investigation:
Know the Judicial Pronouncements concerning Fake Invoicing and Fraudulent ITC, which will become stepping-stones for future litigations:
Judgments where relief has been granted to the petitioners by the Court:
Have we reached a Conclusion?