₹440 crore fake invoice GST scam unearthed, one arrested

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Officials of Directorate General of GST Intelligence (DGGI), Chennai Zonal Unit, have busted a racket involving issue of fake invoices without actual supply of goods to the tune of around ₹440 crore. This, in turn, resulted in fraudulent availment and utilisation of input tax credit of around ₹79 crore. One of three persons involved in the scam was arrested.

Preliminary investigation revealed 54 bogus entities were merely on paper. The bogus entities were floated in several layers to create a complex network of transactions among themselves, including transfer of money in bank accounts to make them appear genuine. This enabled them to make fake invoices to reach the manufacturers in these cases, who avail the fraudulent input tax credit without receipt of goods in question, which is metal scrap, it added.

The investigations revealed that the conspiracy was hatched by three persons. One person took the role of creating fictitious entities and another person played a key role in identifying the recipients of fake invoices to avail the input tax credit. The third person was in charge of the entire day-to-day activities, it added. The arrested person has been remanded in judicial custody, while other two persons are yet to located. The involvement of officials of private banks was being probed. Further investigation is on.

Read More at: https://www.thehindu.com/news/cities/chennai/440-crore-fake-invoice-gst-scam-unearthed-one-arrested/article30119562.ece