The Directorate General of GST Intelligence (DGGI) probed against the Input Tax Claim rackets involving the 461 bogus companies on fake ITC claims. The Gurugram Zonal unit of DGGI has unearthed an ITC scam of Rs. 863 crores. In this matter, till now two key operators were arrested.
According to the information, the racket of passing on fraudulent ITC through fake shell entities was detected, when based on intelligence a search was carried out at a secret office being operated for this purpose.
In addition, the DGGI reported that numerous falsified, morphed, or fraudulent soft copies of papers, including rent agreements, power bills, aadhar cards, driver’s licences, PAN cards, etc., had been found on laptops recovered from this hidden office and utilised to set up and run their fictitious businesses.
The forensic analysis of the laptops and other gadgets that were taken from this office eventually led to the discovery of an ITC scam totaling Rs. 863 crore involving false 461 businesses and the arrest of two key operators. The Initial investigations suggested that the false ITC credit eventually made its way to the industry that is most vulnerable to tax evasion, metal and steel.
Recently, the DGGI had sent show cause notices to various Insurance intermediaries and aggregators across the country for issuing fake invoices to claim ITC. Based on the invoices gathered from 2018 to March 2022, the DGGI began its investigation into tax evasion in 2022, and the authorities discovered evasion of nearly 2,250 crore rupees.
Also, the DGGI of Surat has arrested an accused in the fake ITC claims. The investigation unearthed a chain of more than 05 fake/bogus/non-existent firms at Surat, Gujarat allegedly involved in creating and passing on fraudulent ITC.
Read More: DGGI Intelligence, Surat arrests accused after finding Incriminating Material in Fake ITC Claim Case
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