Home / Economy / DGGI detects 4,500 crore tax credit fraud
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New Delhi: The Directorate General of GST Intelligence (DGGI) has bust a network of firms dealing in fake invoices, bringing to light trading in invoices with taxable value of over 4,500 crores, said an official statement.

The statement said that a syndicate of 636 firms were involved in the case. “The mastermind of syndicate has accepted that they have issued only invoices in these firms and not supplied any goods against them. They have issued invoices involving taxable value of approximately Rs. 4,521 crore having input tax credit implication of approximately 741 crore," the statement said.

The case came to light after some bogus firms were booked by the DGGI recently, which were non-existent at their principal place of business. To trace the real persons behind these fake firms, the physical address from where GST returns were actually filed was ascertained. Then search was conducted last week at that place in Delhi, the statement said. It was found that the proprietor was allegedly engaged in providing cloud storage on his servers to various customers for maintaining their financial accounts. A scrutiny of the server led to detection of the syndicate based in Kolkata, DGGI said. Searches were conducted at various places in Kolkata on 10 January.

During the course of investigation, GST amounting to Rs. 4.52 crore has been deposited by reversal of input tax credit available in the ITC ledger of these firms. Till now approximately Rs. 7 crore lying in various bank accounts of these firms has been frozen. The mastermind behind the whole racket has been arrested on 13 January, the DGGI statement said. Further investigation in the case is on.

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