As part of the government’s drive against fake invoicing rackets, more than 2,500 cases have been registered against 8,000 entities since mid-November. Eight chartered accountants were among the 258 people arrested during the drive.
The central government has informed accounting rule maker and self-regulator Institute of Chartered Accountants of India (ICAI) to take action against its erring members.
Fake invoices are used to evade not only goods and services tax and income tax, but also to divert funds from companies. They are also used for showing non-existent transactions to jack up figures on books to obtain loans from banks.