As part of the ongoing Drive against Fake invoices, multiple searches were conducted by officers of DGGI, Nagpur Zonal Unit at a number of places covering diverse Industrial Sectors across Maharashtra during the last fortnight.
During the investigations, it was observed that the entities covered were trading in a wide variety of taxable goods ranging from Supari and Coal to Textile articles and Iron and Steel products. A large number of entities were found to be non-existent or non-business residential properties and these entities had uploaded fake and forged documents like Electricity Bills and Rental Agreements on the GST portal as proof of business addresses.
Regarding the entities which were found to be functioning, the interrogation of the authorized persons confirmed the fraudulent practices adopted by these entities in availing Input Tax Credit without receipt of any goods. Out of the total fake Input Tax Credit of Rs. 89.73 Crore availed on fictitious paper transactions of Rs. 498.50 Crore, an amount of Rs. 12.78 Crore has already been recovered on the spot.
Further, one person has been arrested yesterday whose interrogation is expected to give further leads in the Fake Invoice rackets.