BHUBANESWAR: In a major breakthrough, the Directorate General of GST Intelligence (DGGI), Bhubaneswar zone, on Thursday arrested two persons including a trader for committing fraud in GST transactions related to input tax credit (ITC) worth several crores of rupees.
“So far, they have been found to have availed ITC of around Rs 11 crore. The identity of the accused have been withheld to nab their associates,” said an official.
One of two, a commission agent, was found orchestrating the arrangement of fake invoices for recipients and receiving a share of the commission amount from the proceeds. He also played a key role in facilitating bogus transactions to enable wrongful ITC claims.
The second, a trader, was found to have availed excess ITC without any actual receipt of goods. The fraudulent activities have caused substantial loss to the exchequer. The arrest is expected to uncover more ITC-related malpractices in the region, sources informed.
Further investigations are underway to identify and apprehend others involved in the fraud and entities linked to the illegal transactions, they added.