THE fake invoices drive continuing against fake invoice racketeers by Directorate General of GST Intelligence (DGGI) formations across the country has proved to be highly effective. As part of the ongoing drive against fake invoices, a large number of searches have been conducted by the officers of DGGI, Nagpur Zonal Unit covering diverse industrial sectors across Maharashtra.

 

During the investigations conducted up to December 31, 2020, which have unearthed multiple rackets of fake invoices, a total of 97 fake invoice cases have been booked against various taxpayers by the officers of DGGI, Nagpur Zonal Unit resulting in busting of fictitious paper transactions of Rs 2,413.55 crore, involving fake Input Tax Credit (ITC) of Rs 482.71 crore, out of which fraudulent ITC of Rs 57.33 crore has already been recovered. It was observed that the entities covered were trading in a wide variety of taxable goods ranging from supari to coal to textile articles and iron and steel products.

 

A large number of entities were found to be non-existent or non-business residential properties and these entities had uploaded fake and forged documents like electricity bills and rental agreements on the GST portal as proof of business addresses. Regarding the entities which were found to be functioning, the interrogation of the authorised persons confirmed the fraudulent practices adopted by these entities in availing ITC without receipt of any goods resulting in arrest of 21 persons who were actively engaged in the commission of fraudulent activities by these entities which include the proprietors, partners as well as directors of limited companies/ private limited companies.

 

The effectiveness of these arrests and the stringent departmental action can be gauged from the fact that in at least six arrests, the judicial custody of the accused ranged from 45 to 60 days, before they were granted bail, which is amongst the highest in recent times in the country. It has been brought to the notice of this office that certain vested interest with ulterior motives are trying to present an innocent picture of the investigations being undertaken by this Zonal Unit which has the potential of emboldening the tax evaders. In this regard, the media would be aware that this office regularly interacts with the media and gives regular press releases of its operations.