DGGI Ahmedabad Detects Rs. 63 Crore Fake ITC Fraud, Arrests Director of Delhi-Based Company
DGGI Ahmedabad has uncovered a ₹63 crore fake ITC fraud and arrested a Delhi-based company director
The Directorate General of GST Intelligence (DGGI), Ahmedabad has detected a fake Input Tax Credit (ITC) fraud of around Rs. 63 crore. In this case, one director of a Delhi-based company has been arrested.
As per the Economics Times news reports, the company was issuing fake invoices without any real supply of goods or services. By using these fake bills, they were claiming ITC and reducing their tax liability. This resulted in major loss to government revenue.
Reports said that the accused used multiple shell companies and fake GST registrations to carry out the fraud. These firms existed only on paper and had no real business activity. The investigation also found doubtful money transactions linked with these entities.
It has been reported that the accused has been booked under the CGST Act, 2017 for offences related to tax evasion and fraudulent ITC claims. These offences are considered serious and are non-bailable. Authorities are now examining bank accounts, documents and digital data to trace more people connected to the case.
According to Business Standard, further arrests are likely as the probe is still ongoing.
The reports also mention that this case is part of a wider nationwide crackdown on fake billing and GST fraud. In recent months, DGGI has uncovered many similar cases across India involving large amounts, sometimes crossing Rs. 100 crore and Rs. 200 crore, with networks of fake firms.
Such frauds happen when people create dummy companies to generate fake invoices. These invoices are then passed to other businesses which use them to claim tax benefits without actual transactions.
As highlighted in multiple news reports, such frauds affect honest taxpayers and reduce government funds meant for public services. The latest action shows that enforcement agencies are increasing strict monitoring and taking strong steps to control GST fraud in the country.
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