The Ahmedabad unit of Directorate General of GST Intelligence (DGGI) has busted into the fake billing racket worth 485 crores involving at least 25 bogus companies. The officials also unearthed a fake Input Tax Credit Claim of Rs. 76 crores.
According to the reports, the DGGI has arrested the two key masterminds, Mr. Jay Harendra Patel and Mr Sanjay Gojhariya. The search in the premises of Jay Harendra Patel led to seizure of Indian currency Rs. 4.85 crores. The officials also discovered and seized the incriminating documents and data from laptop,mobile phone and diary belonging to Jay Harendra Patel.
The Preliminary examination of digital evidence revealed that the offenders have been operating 17 bogus firms and have been issuing fake invoices without supply of corresponding goods.
Using data analytics and intelligence, DGGI officials became suspicious of significant fraudulent billing activities in Rajkot. As the investigation progressed, it came to light that Patel and Gojariya were involved in operating fake companies engaged in the trade of brass and metal scrap.
According to the DGGI Ahmedabad zonal unit, these businesses only existed on paper, and the fake GST registrations were used to fraudulently submit invoices in order to earn input tax credits (ITC) illegally. The pair improperly claimed ITC worth Rs. 76 crore, according to sources. According to preliminary investigations, Patel is the primary planner of this false invoicing scam.
Following Patel’s arrest, DGGI conducted a comprehensive search of his home and workplace and confiscated Rs 4.85 crore in cash along with other digital and tangible evidence. The pair was asked to travel to Ahmedabad. They are currently being produced before the court in order to get their remand for more investigation.
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