An Inter-State fake invoice racket with fake transactions valued at over Rs 131 crore involving 3 taxpayers, one based in Maharashtra and two based in Karnataka, was busted by the officers of DGGI, Nagpur Zonal Unit yesterday.
On the basis of the intelligence gathered using online tools, searches were conducted in remote areas of Chandrapur District against a taxpayer involved in the issuance of fake invoices and availing of fraudulent ITC.
The searches revealed that the taxpayer was fake and non-existent. Further investigations revealed that the documents uploaded on the GST portal as proof of address by the taxpayers like electricity bills etc. were all forged and fabricated.
The investigations also revealed the details of two more taxpayers based in Karnataka who were a part of this racket as they were found to have taken GST registration on the same date, had declared the same eMail addresses in REG 01 and were the sole suppliers/buyers of each other.
– Total fraudulent ITC detected = Rs. 26.09 Crore
– Total entities involved = 3
– Services involved = Works Contract services, Labour Supply
The matter has been taken up with the jurisdictional DGGI, Zonal Units for apprehending the kingpin who is reportedly based in Karnataka.