Synopsis
On February 8, the Directorate General of GST Intelligence arrested three individuals in Bhubaneswar for their alleged involvement in a fraudulent scheme that involved issuing fake invoices and unlawfully passing on Input Tax Credit (ITC) totaling Rs 16.96 crore without actual goods supply.Key Takeaways
- Three individuals arrested for GST fraud.
- Rs 16.96 crore in fake ITC involved.
- Manipulation of GST laws uncovered.
- Involvement of accountant and sales executive.
- DGGI emphasizes strict action against tax evasion.
Bhubaneswar, Feb 8 (NationPress) The Directorate General of GST Intelligence (DGGI) from the Bhubaneswar Zonal Unit has apprehended three individuals for their alleged roles in the issuance of fraudulent invoices and illicitly transferring Input Tax Credit (ITC) totaling Rs 16.96 crore without the actual supply of goods.
According to a press release from DGGI on Friday, the main suspect was functioning as both the partner and proprietor of two entities.
During the investigation, it was found that this main suspect had issued numerous fraudulent invoices to different contractors.
The agency also highlighted that the primary accused had unlawfully passed on fake ITC and profited from commissions based on the invoice amounts.
The inquiry uncovered that the accused manipulated GST regulations to fabricate a network of fictitious transactions, leading to a considerable revenue loss for the government.
The second suspect, who served as an accountant for the firms, was tasked with managing financial records, producing fake sales invoices, e-way bills, and other documentation under the proprietor's directives. His role was pivotal in executing the fraudulent operation, earning commission through the fake ITC schemes, as stated by DGGI.
Additionally, the third suspect, a sales executive, acted as the liaison between the firms and contractors.
This individual would probe their invoice needs, facilitate the generation of fraudulent invoices, and collect commission payments in cash, which he subsequently deposited into the proprietor's bank account.
The DGGI reiterated its dedication to enforcing strict measures against tax evasion and fraudulent ITC claims. This arrest serves as a stern warning to businesses participating in such misconducts, the DGGI remarked.
It urged taxpayers to adhere to the GST laws and avoid engaging in illicit transactions to prevent severe legal repercussions.
DGGI, the law enforcement agency under the Ministry of Finance, is responsible for collecting, analyzing, and disseminating intelligence concerning GST evasion.
