In a major crackdown on GST fraud, the Directorate General of GST Intelligence (DGGI) has arrested two key players, Manish and Amit, residents of Gurmukh Singh Colony, Mandi Gobindgarh, in connection with a fake billing scheme worth over ₹700 crores. The elaborate fraud, orchestrated through identity theft, involved the creation of fictitious firms to generate fake invoices and fraudulent input tax credit (ITC) claims, resulting in tax losses exceeding ₹100 crores.
Investigating authorities said that the two had set up numerous shell companies and passed bogus ITCs to mid-level companies. Money laundering was done through seven APMC accounts and there were cash withdrawals of more than Rs 717 crores from one branch of the bank alone.
From raids conducted on their premises they found 11 mobile phones, 7 pen drives, two laptops, 56 cheque books, 27 identity cards, seven stamps, 46 ATM cards. The brothers admitted to the fraud and were arrested on October 9 and held in judicial custody.
DGGI Ludhiana is intensifying efforts to track down other entities involved in similar tax evasion schemes. The authorities are committed to combating the growing issue of fake billing in the region, with further arrests anticipated.
CAclubindia
