The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has busted a Rs 16 crore GST fraud involving bogus companies engaged in fraudulent ITC transactions. One person was arrested following search and inspection operations at three locations in Karnataka's Ballari district.
Investigations revealed a well-organised network of shell entities created solely to generate fake invoices and e-way bills, without any actual supply of goods or services. These fraudulent documents were used to avail and pass on ITC amounting to Rs 16 crore.
During searches at the principal place of business, officers seized incriminating documents that confirmed the fraudulent nature of the activities. The accused had allegedly forged rental agreements, letterheads and other paperwork to set up these entities, even misusing the Aadhaar and PAN details of employees to facilitate the fraud.
According to officials, data analysis of the transactions provided substantial evidence of the bogus nature of the operations. The arrested individual, identified as the mastermind behind the fake companies, was produced before the court and has been remanded to judicial custody.
Authorities have reiterated their commitment to cracking down on GST evasion and urged taxpayers to remain vigilant against fraudulent activities that undermine the tax system.
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