DGGI probe against Fake GST Bill rackets worth Rs. 1000 crore; suspects 206cr loss to Government: Arrests Mastermind
The Mumbai unit of Directorate General of GST Intelligence (DGGI) probed against the fake Goods and Services Tax (GST) bill rackets worth Rs. 1000 crores. The officials suspected that the government had suffered a revenue loss of Rs. 206 crores. Based on DGGI's investigation, it has been uncovered that approximately 160 companies were established using fraudulently obtained documents,...
The Mumbai unit of Directorate General of GST Intelligence (DGGI) probed against the fake Goods and Services Tax (GST) bill rackets worth Rs. 1000 crores. The officials suspected that the government had suffered a revenue loss of Rs. 206 crores.
Based on DGGI's investigation, it has been uncovered that approximately 160 companies were established using fraudulently obtained documents, with promises to assist individuals in obtaining government Covid relief or employment. Once the documents were obtained, the fraudsters created fictitious companies, bank accounts, and invoices to facilitate these companies in wrongfully claiming tax credits.
According to reports, this fraudulent activity primarily targeted the metal and scrap industry. Nevertheless, the DGGI has apprehended the mastermind behind the scheme and has indicated that there are still many more individuals to be arrested in connection with this matter.
The investigation uncovered the involvement of numerous companies in generating fake GST bills or invoices to fraudulently claim Input Tax Credit (ITC) for transactions that never involved any actual supply of goods. The gang deceived vulnerable individuals during the Covid pandemic by promising them employment, persuading them to provide their KYC (Know Your Customer) details, which were then misused for these illegal activities.
In the 50th GST Council Meeting, the Revenue Secretary Sanjay Malhotra stated that in the official meeting of the officers of GST, 70,000 suspected firms have been identified and able to verify about 60,000 of them. And 17,000 were found to be bogus in which the action has been taken. And roughly about 17,000 crores of GST have been evaded by these firms.
Read More: Suspects GST Evasion of Rs. 17,000 crores through fake firms: Revenue Secretary in GST Council
Recently, As part of their ongoing efforts to combat syndicates running fraudulent companies, the Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit, has successfully dismantled a significant crime syndicate operating across 19 states.
The mastermind behind this operation established shell firms/companies and obtained GST registration for fictitious entities by procuring Aadhar, PAN, and photographs from individuals at a minimal cost.
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