The Directorate General of GST Intelligence (DGGI) of Chennai Zonal Unit has arrested 2 men Input Tax Credit (ITC) Rackets involving 59 fake companies on bogus ITC claims of Rs. 175.58 crores.
At the Bengaluru Airport, authorities apprehended the principal offender as he attempted to escape the country. This individual had established 59 fraudulent businesses by exploiting the PAN-Aadhaar information of unsuspecting individuals, generating counterfeit invoices, and making false claims for Input Tax Credit (ITC).
The racket also used remote access software to establish that they operate in different locations to avoid the suspicion. However, the GST department tracked the IP address and searched the multiple locations simultaneously.
The intelligence team has seized 2 laptops, 8 mobile phones, wi-fi modem and sim cards. The GST department has cancelled the GST registrations. Also, the 25 bank accounts of the accused gang were frozen.
Recently, The Directorate General of Goods and Services Tax Intelligence (DGGI) of Jaipur busted into the Input Tax Credit (ITC) rackets operating in 14 states through 549 fake firms involving bogus ITC claims of Rs. 1,047 crores. The officials had traced the mastermind of the racket in Delhi and arrested.
Furthermore, the central government intended to enhance the punishment for instances of identity theft and the improper utilization of PAN-Aadhaar cards. The financial harm inflicted upon the government extends beyond the limit through counterfeit companies, invoices, and false ITC (Input Tax Credit) claims.
Read More: Central Govt. to enhance Penalty and Punishment to suppress Identity Theft and PAN-Aadhaar Misuse
The present scenario represents a GST fraud that was uncovered by the DGGI (Directorate General of GST Intelligence). In light of such occurrences, it is imperative for the government to take appropriate measures aimed at augmenting the penalties associated with the misuse of significant identity documents. Additionally, the swift implementation of biometric authentication should be carried out to effectively combat GST frauds.
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