New Delhi, Nov 6: The Directorate General of Goods and Services Tax Intelligence (DGGI), Meerut Zonal Unit, has busted a large-scale racket involving fake invoicing to the tune of a whopping Rs 1,481 crore, resulting in passing on of fraudulent input tax credit to the tune of Rs 275 crore.
As many as 102 fake firms were created to rake in the money through 1,000 front companies.
“Through meticulous data mining, the DGGI Meerut Zonal Unit has successfully dismantled a major syndicate operated by four masterminds,” the Finance Ministry said on late on Monday evening.
One of them, working in a placement consultancy firm, was responsible for arranging PAN, Aadhaar, electricity bill, address proof, and other documents required for GST registration. To achieve this, the mastermind enticed candidates with modest financial perks in exchange for surrendering their KYC documents which were used to carry out the fraud.
The operations were carried out through a secret office where crucial operational activities, such as invoice generation, e-way bill creation, GST returns filing, and maintaining sale-purchase ledgers of the fraudulent firms, took place. To aid in their operations, the syndicate recruited several assistants.