Government Busts Fake GST Invoice Generation Frauds

Recently, the government unearthed over 6600 fake GST identification numbers (GSTIN). With combined efforts, CGST and DGGI commissioners outed the GST fake invoice generation scammers and tax credits frauds.

Rupees 700 Crore Recovered, 215 Arrested

The GST intelligence authorities with the help of data analytics, AI and BAFTA tool identified the wrongdoers with substantial proof. Further, on pinpointing the fraudsters, 215 scammers were arrested. The list included the scam masterminds, proprietors, directors, company secretaries, brokers, and GST practitioners. In addition to the fake entity operators, the beneficiaries are under scrutiny for the GST fake invoice generation scam.

Zone Wise Arrest Details

  1. Ahmedabad Zonal unit– This zone has over 14 GST fake invoice generation cases. CGST initiated against AK Impex, Mannat Impex, Roselab Bioscience, Tushar Mehta, Niraj Cement structurals, and more. Of which, at least eight companies were non-existent but have availed ITC.
  2. Bengaluru Zonal unit: Bengaluru CGST booked cases against five firms.
  3. Indore Zonal unit: Indore CGST identified four GST fake invoice generating firms, including the famous Kudan enterprises and Bajaj Trading.

That apart, several firms and fraudsters were identified and arrested in Bhubaneswar, Chennai, Delhi, Hyderabad, and Maharashtra.

Nation Wide Drive Against GST Fake Invoice generation Fraud

The DGGI and CGST commissioners conducted a nationwide drive against the GST fraudsters. In the last three weeks, the government outs over 1161 cases. Also, more than 4000 GSTIN fake entities are out in the open now. So far, the Directorate General of GST Intelligence conducted the said drive in 38 cities. Accordingly, this included Bangalore, Delhi, Hyderabad, Jaipur, Siliguri, Lucknow, Ahmedabad, Kolkata, Jammu, Surat, Vadodara, Pune, and, Visakhapatnam.

In all, the centre is taking into consideration the ideas put forth by the GST council. Further, the restrictions are in place that tackles GST fraudsters’ menace while also easing the genuine taxpayer business.

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