DGGI probe detects Rs 1,196 cr fraudulent Input Tax Credit transactions

Pune, Feb 12 (PTI) The Directorate General of GST Intelligence (DGGI) has unearthed fraudulent Input Tax Credit (ITC) transactions amounting to Rs 1,196 crore by exposing a network of bogus companies and arrested a person, as per an official release.

DGGI, Pune zonal unit, conducted searches at multiple locations in Pune, Delhi, Noida and Muzaffarnagar. The investigation showed that the accused had set up shell entities that generated fake invoices and e-way bills.

"These e-way bills had no RFID movements associated with them, confirming the absence of the actual supply of goods. The fraudulent network facilitated the availing and passing of fake ITC of Rs 1,196 crore," the release stated.

The arrested individual, who allegedly masterminded the fraud, is the director of a private firm based in Muzaffarnagar.

The investigation showed the cartel maintained a database of addresses, identities, email IDs, and phone numbers, which were rotated to obtain new GST registrations and evade detection.

The accused misused the personal details of unsuspecting employees, primarily from economically weaker sections.

During searches, officials recovered original invoices, financial records, company stamps, and seals, according to the release.

The investigation has so far identified 20 such fictitious companies with no genuine business activity. Authorities have also frozen one bank account linked to a fraudulent entity, while further investigations are underway. PTI SPK NSK

Source: PTI