DGGI Belagavi Zonal Unit uncovers fraud involving issuance of fake GST invoices of around Rs. 145 crore and tax evasion of Rs. 43 crore; one arrested
The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit has registered a case and uncovered a GST fraud involving issuance of fake invoices valued at approximately Rs 145 crore, resulting in alleged tax evasion of about Rs 43 crore. One individual has been arrested in connection with the case.
Preliminary findings indicate that a group of people created fake GST registrations using forged documents and availed and passed on fraudulently availed ITC. During the search of the accused’s premises, officers recovered several documents/ evidences, including a mobile phone, forged documents, fictitious Aadhaar cards and photographs of signboards of non-functional units. The investigation further indicates the use of shell entities with no genuine business operations to generate fake invoices and e-way bills.
The accused was arrested under Section 69 of the CGST Act, 2017 in Bengaluru and produced before the Special Court for Economic Offences, which granted transit remand for his transfer to Belagavi. He was subsequently produced before the Judicial Magistrate, Belagavi, and has been remanded to judicial custody for seven days.
Further investigation is in progress.
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