The Directorate General of GST Intelligence (DGGI) in Visakhapatnam has arrested the mastermind in charge of the generation of false invoices worth Rs. 108.9 crores and the subsequent fraudulent claim of Rs. 19.60 crores in Input Tax Credit (ITC).
According to information provided, these organisations have been used to facilitate the transfer of illegal ITC by sending fictitious GST invoices to several commercial businesses and corporations based in different States.
The accused and his associates established fictitious business entities with the primary intention of deceitfully transferring fake Input Tax Credit (ITC), resulting in a defrauding of the exchequer of 19.60 crore. To achieve this, they employed stolen identities, including PAN, Aadhaar, and bank accounts of innocent individuals, disguising their actions as legitimate bank loan applications and other activities.
The upsurge of fake registrations and the issue of false invoices to claim ineligible Input Tax Credit (ITC) created a serious difficulty, according to M.R.R. Reddy, the Principal Additional Director General of DGGI, Visakhapatnam Zonal Unit. With the intention of misleading and defrauding the exchequer, shady individuals participated in fraudulent trades.
The officer admonished individuals against falling prey to the tricks of con artists who were convincing them to rent out half of their bank accounts, PANs, Aadhaars, and mobile OTPs in exchange for meagre sums of money, job promises, or other inducements.
These scammers were using these specifics to create fictitious corporate firms, placing people involved at risk of legal action from the department.
The offender was taken into custody in accordance with Section 69 of the CGST Act of 2017 and presented before the Visakhapatnam Special Judge for Economic Offences. The accused has been ordered to judicial custody for 14 days by the court. The probe is being expanded upon.
Recently, the DGGI Meerut Zonal Unit has uncovered two significant fake billing schemes involving 246 shell/fake entities. These entities were involved in fraudulent activities, passing on a total of Rs. 557 crore worth of fake Input Tax Credit (ITC).
Read More: DGGI busts racket involving 246 Shell Companies involving ITC Claim of Rs. 557 crore : Arrests 3
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