As a part of the ongoing drive against fake invoices, consequent to the detection of Nashik / Dhule based entities which were found to be non-existent, multiple searches were conducted in the first week of March 2021 by the officers of DGGI, Nagpur Zonal Unit in NCR, including New Delhi and Faridabad, to target 11 entities operating in NCR which had made fake supplies to the Nashik / Dhule based entities. The targeted searches revealed that these 11 entities were non-existent at the declared addresses which were found to be religious places, residences of unrelated persons or non-existent on the ground.
In the first Fake invoice network, 6 of these 11 NCR based entities had made fake transactions of goods falling under Chapter 38, 73, 74, 84 etc. with the Nashik / Dhule based entities while 4 of these 11 NCR based entities shared common PANs with other entities. These 10 NCR based entities had themselves availed fraudulent Input Tax Credit of Rs 315.65 Crores and passed on a part of this fraudulent ITC to the Nashik / Dhule based entities.
In the second Fake invoice network, another NCR based entity had passed on fraudulent Input Tax Credit of Rs 145.69 Crores without any corresponding inward supplies and a large part of this fraudulent ITC was passed to some entities of the first network which had further passed on this fraudulent ITC to the Nashik / Dhule based entities.
Thus 2 major Fake invoice networks consisting of 11 NCR based entities operating between Nashik/Dhule and NCR, engaged in fraudulent transactions of app. Rs. 2563 Crore involving fake ITC of Rs 461.34 Crores, were successfully busted by DGGI, Nagpur Zonal Unit and all out efforts are being made to trace the masterminds who had floated these fictitious entities as well as for recovery of fraudulent ITC passed from the ultimate beneficiaries.
