On the basis of specific information regarding the operation of a massive Fake invoice racket, simultaneous searches were conducted by the officers of DGGI, Nagpur Zonal Unit at a number of places in Yavatmal District.
During the investigations and on interrogation of the authorized persons, it was revealed that 4 Taxpayers based in Yavatmal District were involved in issuance of Fake Invoices and availment of fraudulent Input Tax Credit, without supply of any goods or services. These Taxpayers had declared themselves as Commission Agents and the suspicion regarding their activities arose because these Taxpayers were showing huge transactions on paper while working on commission basis [996111] even though they were located in a remote area of Maharashtra with no major Industrial hubs in their vicinity and with very poor rail/road connectivity.
The declared places of business of these Taxpayers were all found to be residential premises with no business activities and deceptive documents were found to have been uploaded on GSTN as proofs of addresses. It was observed that these Taxpayers had undertaken fake transactions valued at Rs. 621.60 Crore only on paper and had cumulatively availed and passed on fraudulent ITC of Rs. 31.08 Crore on fake invoices without receipt or supply of any goods or services.
All 4 Proprietors have been arrested today and their interrogation is expected to give further clues regarding the fake operations.
