GST Intelligence busts Rs 220 crore fake tax-invoices scam in Tamil Nadu

According to the documents seized, fake invoices covering goods worth more than Rs 220 crore were issued without supply of goods.

Published: 23rd December 2018 08:55 PM  |   Last Updated: 23rd December 2018 08:55 PM   |  A+A-

tax, graphic, income tax

Image for representational purpose only.


CHENNAI: The Directorate General of GST Intelligence (DGGI) has busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 220 crore to avail input-tax credit.

According to the DGGI, searches were conducted at several official as well as residential premises last Thursday in Chennai and Coimbatore in Tamil Nadu and busted the racket and arrested two persons.

"Several incriminating documents, including copies of fake invoices, issued on the letterheads of several firms that existed merely on paper, were seized", an official release issued on Sunday by Additional Director General K Balaji Majumdar said.

READ| Cinema, insurance sectors welcome GST cuts, auto industry not so much

The modus operandi was that several bogus companies and bank accounts were created using PAN and Aadhaar number of family members and employees, and complex transactions were made without the supply of goods, the release said.

According to the documents seized, fake invoices covering goods worth more than Rs 220 crore were issued without supply of goods, it said.

The officials seized chequebooks with pre-signed cheque leaves pertaining to 45 bank accounts, rubber stamps in the name of 30 companies and computer hard disks, the release said.

Two persons have been arrested on Saturday and the DGGI provisionally attached bank accounts that were operated by the imposters, it said, adding that the arrested had been remanded to judicial custody.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp