Fake GST bill racket worth ₹1,000 cr busted by DGGI

The Directorate General of GST Intelligence (DGGI) has busted a gang of ‘fake GST bill operators’ who used to run a syndicate to help companies, especially in the metal and scrap industry, to avail of input tax credit (ITC).

DGGI’s probe has revealed that around 160 companies were floated, using documents that were fraudulently procured from people by promising to help them get government’s Covid relief or employment. Once their documents were procured, fictitious companies, bank accounts and invoices were created to help the companies avail of the tax credit.

While the transactions under the scanner total over ₹1,000 crore, the DGGI suspects a revenue loss of ₹206 crore to the government.

The Mumbai unit of the DGGI has arrested an alleged mastermind in the matter. More arrests are likely to be made in the case, people in the know said.

“During the course of investigation so far, it was revealed that these firms are involved in a large-scale nexus of bogus billing/fake invoicing wherein only invoices have been issued and no actual supply of goods has taken place,” said an official. “While the probe is from FY 2018, the investigation has revealed that the gang managed to lure more people to share their KYCs during Covid by promising them jobs or government schemes,” the official added.

“…many of the GSTINs have already been cancelled by concerned jurisdictional authorities, however, proprietors and directors mentioned against these firms in the GST portal have not been traced till date, as all the firms are being managed, handled and operated by a few individuals,” the official said.

Source from: https://economictimes.indiatimes.com/news/india/fake-gst-bill-racket-worth-1000-cr-busted/articleshow/102116410.cms

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