BHUBANESWAR: In a major breakthrough, the Directorate General of GST Intelligence (DGGI) arrested two fraudsters, based put of Delhi, for their alleged involvement in fake input tax credit (ITC) scam running into Rs 300 crore.In GST, ITC refers to the tax on purchase of goods or services which is deducted from the tax payable on outward supplies.
Sources in Bhubaneswar zonal unit of DGGI said, the accused are masterminds of a massive scam that involves creation fake companies. Using fake invoices generated in the name of the sham companies, the duo used to collect input tax credit from different states.
“This team had opened more than 50 sham companies using Aadhaar and PAN cards of several individuals without their knowledge. The number of such sham companies could be in hundreds and DGGI has launched an investigation into the matter,” sources said.
Acting on a tip-off, DGGI officers laid a trap to nab the accused when they arrived here from the national capital. The two involved in the country-wide scam have generated false invoices of more than Rs 300 crore.
The two were claiming to be running companies involved in purchasing items like motor parts and shoes and later exporting them to Nepal. “They had already availed Rs 1 crore ITC by producing fake invoices. They landed in Bhubaneswar to take a refund of another Rs 1 crore by submitting fake invoices,” said sources.
Sources said DGGI has intensified efforts to curb GST frauds and the recent operation in Bhubaneswar is part of its special drive launched across the country.