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DGGI Sleuths Arrest Two for Rs 170 Crore Fraudulent Transactions in Maharashtra

Representative Image.

Representative Image.

A specific Intelligence was developed by officers of the DGGI, Aurangabad Regional Unit, that two proprietorship firms involved in trading of MS waste/scrap were availing and passing fraudulent ITC on fake tax invoices without supply of any goods, stated the release issued by the Nagpur zonal unit, DGGI, on Saturday.

The Directorate General of GST Intelligence (DGGI) has arrested two proprietors of trading firms from Aurangabad in Maharashtra in connection with alleged fraudulent transactions of over Rs 170.35 crore, as per an official release. Prima facie, input tax credit of Rs 18.66 crore was availed on fake invoices and such invoices of Rs 14.10 crore were issued.

A specific Intelligence was developed by officers of the DGGI, Aurangabad Regional Unit, that two proprietorship firms involved in trading of MS waste/scrap were availing and passing fraudulent ITC on fake tax invoices without supply of any goods, stated the release issued by the Nagpur zonal unit, DGGI, on Saturday. Searches were conducted by DGGI officials at multiple locations on December 3 and 4 during which a number of incriminating documents like diaries were unearthed from many secret locations.

"Detailed examination of these documents revealed that the fake transactions had been coded by these firms with GST rates reflecting the commission amount payable for the fake transactions e.g 5 per cent GST rate meant commission of 2.5 per cent for both sides of the fake transaction. "During interrogations, the proprietors admitted to have done the fake transactions," it said.

The probe has revealed that these taxpayers had cumulatively availed fraudulent input tax credit of Rs 18.66 crore on fake invoices and had cumulatively issued fake invoices of Rs 14.10 crore, as per the DGGI. These offences fall under clause (b) and clause (c) of sub-section (1) of Section 132 of the CGST Act, 2017.

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The accused duo was arrested on Friday and remanded in judicial custody till December 19,the release said.

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