The Directorate General of GST Intelligence (DGGI), a law enforcement agency under the Ministry of Finance responsible for fighting tax evasion in India. The Maharashtra DGGI had a major success in the month of January and February.
Across Maharashtra during January 2021 and February 2021 fraudulent transactions of Rs. 656.22 crore by 48 entities were traced. It includes a fake ITC of Rs. 7.27 crore recovered in cash on the spot and four persons arrested.
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 two months.
During the investigations, it was observed that the entities covered were trading in a wide variety of taxable goods ranging from Spices and Areca Nuts to Cement 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. 118.12 crore availed on fictitious paper transactions of Rs. 656.22 crore, an amount of Rs. 7.27 crore has already been recovered on the spot. Further, four persons, who were the masterminds, were arrested in these two months, informs a communique.