DGGI, Ngp busts fake invoice racket with transactions over Rs 131 cr
   Date :19-Nov-2020

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Business Bureau :
 
AN INTER-State fake invoice racket with fake transactions valued at over Rs 131 crore involving three taxpayers, one based in Maharashtra and two based in Karnataka, was busted by the officers Directorate General of GST Intelligence (DGGI), Nagpur Zonal Unit on November 18. On the basis of intelligence developed using on-line tools, searches were conducted in remote areas of Chandrapur district against a taxpayer involved in issuance of fake invoices and availment of fraudulent input tax credit (ITC). The total fraudulent ITC detected was of Rs 26.09 crore.
 
The services involved were of contract service and labour supply. The searches revealed that the taxpayer was fake and non-existent. Further investigations revealed that the documents uploaded on the GST portal as proof of address by the taxpayers like electricity bills etc., were all forged and fabricated.
 
The investigations also revealed the details of two more taxpayers based in Karnataka who were a part of this racket as they were found to have taken GST registration on the same date, had declared the same e- mail addresses in REG 01 and were sole suppliers/buyers of each other. The matter has been taken up with the jurisdictional DGGI, Zonal units for apprehending the kingpin who is reportedly based in Karnataka.