DGGI Nagpur busts fake GST invoice racket, arrests 4 persons

Directorate General of GST Intelligence (DGGI) said it has busted fraudulent transactions of Rs 621.60 crore, including fake input tax credit (ITC) of Rs 31.08 crore on fake invoices and arrested proprietors from Yavatmal district of Maharashtra on Friday.

A release by DGGI Nagpur zonal unit said on basis of specific information regarding operation of a massive fake invoice racket, simultaneous searches were conducted by DGGI officers at a number of places in Yavatmal district.

It furr informed that during investigations and on interrogation of authorized persons, it was revealed that four taxpayers based in Yavatmal district were involved in issuance of fake invoices and availment of fraudulent ITC, without supply of any goods or services.

se taxpayers h declared mselves as commission nts and suspicion regarding ir activities arose because se taxpayers were showing huge transactions on paper while working on commission basis even though y were located in a remote area of Maharashtra with major industrial hubs in ir vicinity and with very poor rail/ro connectivity.

" declared places of business of se taxpayers were all found to be residential premises with business activities and deceptive documents were found to have been uploed on GSTN as proofs of dresses."

"It was observed that se taxpayers h undertaken fake transactions valued at Rs 621.60 crore only on paper and h cumulatively availed and passed on fraudulent ITC of Rs 31.08 crore on fake invoices without receipt or supply of any goods or services," it said.

It furr informed that all four proprietors have been arrested on Friday and ir interrogation is expected to give furr clues regarding fake operations.