DGGI arrests Mastermind of Invoice Racket issuing fake invoices worth Rs.97.8 cr with bogus ITC worth Rs. 13 cr

The  Directorate General of GST Intelligence (DGGI) arrested the mastermind of the fake invoicing racket. The bogus invoices were generated, and the ITC (Input Tax Credit) was claimed. The racket has taken advantage of the government in this way.

The officers of DGGI conducted search operations on 15 June 2023 at the residence cum business premises of the mastermind and certain firms, on intelligence that they indulged in availing and passing on fake Input Tax Credit (ITC), without actual supply or receipt of goods.

The papers and evidence show that the racket generated fraudulent invoices totaling more than Rs. 97 crores, and that only four of the enterprises implicated in the racket were able to claim fake ITC totaling more than Rs. 13 crores.

The items like printed weighbridge data, weighbridge software without a weighbridge, multiple phones used to receive OTPs related to GST returns, E-way bills, etc., and computers containing various documents and data of about 10-15 registrations run by the master mind were all discovered as a result of the searches that were conducted.

Further the officers relieved that, to obtain the bogus ITC, the mastermind produced these false invoices to a significant producer of TMT bars, which cost the government exchequer numerous crores in lost revenue.

While confronted with the evidence found during the search, the  mastermind of the ITC and fake invoicing racket admitted to the violations and acknowledged that his activities resulted in a significant loss of money for the government.

As the investigations are at a critical stage, the mastermind has been arrested and sent to judicial custody for 14 days. The investigation is in progress.

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