The Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) has discovered a significant fraudulent input tax credit (ITC) scam involving 539 fictitious firms that distributed bogus ITC worth Rs. 1,124.66 crore. The officials arrested one key operative person.
According to forensic analysis, numerous bogus Aadhar cards, PAN cards, GST registrations of fake businesses, sample invoices from fake businesses, etc. were found. The initial findings suggested that the highly evasion-prone metal/iron and steel sector is where the fake ITC credit ultimately ended up.
This preventive action has prevented additional damage to the government coffers by preventing the use of Rs. 814.61 crore of ITC that these fraudulent businesses had obtained for the intention of passing on.
The DGGI officials have also observed a practice that is common in the supply of mobile phones, in which the devices are bought on the black market without an accompanying invoice or via online e-commerce sites in the names of numerous unregistered people.
The mobile phones are hoarded by some dishonest individuals or groups, who then sell them in large quantities to various vendors. However, because the goods lack ITC that may be used further, these people set up a network of fictitious businesses to produce counterfeit ITC, which they then use to further reduce their GST liability.
The DGGI has discovered 1,198 false GSTINs in the Financial Year 2023–24, resulting in the fraudulent ITC discovery of Rs. 2,762.30 crore, and has avoided revenue loss to the tune of Rs. 900 crore (approximately). Also, 6 people in total have been taken into custody in these incidents.
The Gurugram Zonal Unit has discovered 1,198 false GSTINs in the Financial Year 2023–24, resulting in the fraudulent ITC discovery of Rs. 2,762.30 crore, and has avoided revenue loss to the tune of Rs. 900 crore (approximately). 6 people in total have been taken into custody in these incidents.
Recently, the 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.
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