The Nagpur zonal unit of Directorate General of GST Intelligence (DGGI)has busted a fake invoice racket of over Rs 115 crore and arrested the proprietor of the city firm on Thursday, an official said.

On the basis of specific information regarding the issuance of fake invoices and availment of fraudulent Input Tax Credit (ITC), simultaneous searches were conducted by officers of DGGI at the premises of a number of taxpayers in Ludhiana and Nagpur on Wednesday, according to a press release issued by DGGI additional director Pradip Gurumurthy.

“These searches revealed that taxpayers based at Ludhiana and Nagpur were non-existent and all the supplies made by them to M/S Raja Cement House, Satyam Nagar in Nagpur were merely on paper under fake invoices without corresponding supplies of goods,” the release said.

Preliminary investigations have revealed Raja Cement House had cumulatively received and issued fake invoices valued at over Rs 115 crore and availed fraudulent ITC of Rs 10.44 crore on these fake invoices, it said.

“On sustained interrogation, proprietor of Raja Cement House Raja, Ashok Agrawal, admitted the fact of receiving and issuing fake invoices and availing fraudulent input tax credit on these fake invoices,” the release said.

He was arrested on Thursday, it added.

(With input from agencies)