The Directorate General of GST Intelligence (DGGI), Bhubaneswar Zonal Unit, has arrested a Mumbai-based Chartered Accountant, Nilesh Yogesh Jigiwala, for his alleged involvement in a massive GST fraud exceeding Rs 325 crore.
According to DGGI officials, Jigiwala was the mastermind behind an elaborate network of shell companies that were used to generate and pass on fraudulent ITC to multiple entities across the country. Preliminary investigations suggest that he was operating a web of over 105 fake and benami firms, which were created solely for the purpose of availing and passing fake ITC without any actual movement of goods or services.
Sources revealed that Jigiwala not only facilitated these fraudulent transactions but also helped large companies wrongfully claim subsidies by misusing the GST registration numbers of small business owners. This manipulation enabled the beneficiaries to inflate their input credits and evade substantial tax liabilities.
The DGGI team, acting on intelligence inputs, tracked Jigiwala's movements and apprehended him in Mumbai earlier this week. He was subsequently brought to Bhubaneswar for interrogation under transit remand. Officials said he is being questioned to identify the beneficiary firms and co-conspirators involved in the racket.
A senior DGGI official said, "This is one of the biggest GST fraud cases unearthed in the region. The accused chartered accountant played a pivotal role in orchestrating fake billing networks and manipulating GST returns to siphon off hundreds of crores in fraudulent tax credits."
The DGGI has intensified its nationwide drive against fake invoicing and ITC fraud under the GST 2.0 compliance framework, which aims to curb revenue leakages and promote transparent tax practices. More arrests and searches are expected as the investigation unfolds.
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