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GST - DGGI detects fake invoices worth Rs 500 Cr

Published: Jan 23, 2019

By TIOL News Service

KOLKATA, JAN 23, 2019: LAST Sunday, yet another GST fraud involving a whopping Rs 500 crores of bogus transaction involving GST credit of more than Rs 100 crores was busted by the Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit (KZU).

Simultaneous search operations were conducted by the officers of DGGI, KZU at the residence and office premises of One Ashok Agrawal (Alias “Gillu”) who floated number of fake companies which existed only on paper and without any actual transaction of goods or services. The racket used number of bogus companies floated for this purpose and lured illiterate and poor people who, in lieu of little money, lent theirAadhar Card, Pan Card etc. which were further used to create dummy directors in such fake companies. Invoices were raised in the name of such companies without any supply of goods or services and on the basis of such bogus invoices, the recipient of invoices availed illegal credit of GST to meet the tax obligation and thereby depriving the Government of the revenue. Money was subsequently recirculated through a complex web of entities keeping the commission amountto make everything appear as regular

Earlier in November, another person named Laddu Gopal Saraf was also arrested for similar kind of offence. In May, 2018, first such arrest on GST fraud in Kolkata and was carried out by the officers of DGGI, KZU and two persons – Sanjay Bhuwalka & Neeraj Jain – running a similar network of fake companies were arrested.