The city zonal unit of the Directorate General of GST Intelligence (DGGI) on Tuesday unearthed a GST fraud of Rs 500 crore over multiple transactions. This was the fifth major case unearthed by the unit. Two persons were arrested in the case. The accused is believed to be the brain behind the money laundering operation. They were produced at Sealdah court that remanded them to judicial custody till March 6. DGGI has also recovered Rs 5.8 crore from two firms.
The total GST credit involved in the cobweb of transactions was Rs 96 crore. According to DGGI, on scrutiny of the returns and documents, it prepared to carry out simultaneous search operations at 10 locations. These were, however, found to be non-existent. The companies existed only on paper and they were involved in the passage of fake invoices without supply of goods and services.
“Hence, a huge amount of fake input tax credit was passed on to recipient companies across India who availed this fake credit of GST to meet their tax obligations, thus depriving the government of revenue,” a DGGI spokesperson said. The money was paid through RTGS, to make the transactions appear regular, which was subsequently recircu-lated through a complex web of entities keeping the commission amount.