Central Agency Finds Fraudulent Transactions Worth Rs 498.5 Crore In Maharashtra

The Directorate General of GST Intelligence (DGGI) has busted fraudulent transactions of Rs 498.50 crore by 26 entities across Maharashtra, an official release said.

These include fake Input Tax Credit (ITC) of Rs 12.78 crore which was recovered in cash on the spot and one person was arrested, the DGGI release said.

The release informed that as part of the ongoing drive against fake invoices, multiple searches were conducted by officers of DGGI, Nagpur Zonal Unit at a number of places covering diverse industrial sectors across Maharashtra during the last fortnight.

During the investigations, it was observed that the entities covered were trading in a wide variety of taxable goods ranging from supari and coal to textile articles and iron and steel products.

A large number of entities were found to be non-existent or non-business residential properties. These entities had uploaded fake and forged documents like electricity bills and rental agreements on the GST portal as proof of business addresses, the release said.

"Regarding the entities which were found to be functioning, the interrogation of the authorised persons confirmed the fraudulent practices adopted by these entities in availing input tax credit without receipt of any goods," the DGGI said.

Out of the total fake Input Tax Credit of Rs 89.73 crore availed on fictitious paper transactions of Rs 498.50 crore, an amount of Rs 12.78 Crore has already been recovered on the spot.

"One person has been arrested yesterday whose interrogation is expected to give further leads in the fake invoice rackets," it said.