Intelligence officers of the Goods and Services Tax (GST) department have busted a racket involving 461 fake entities. This is a case of misappropriation of Rs 863 crore. According to the GST department, this racket fraudulently transferred fake Input Tax Credit (ITC) of Rs 863 crore.
According to the Finance Ministry, the Gurugram Zonal Unit of the Directorate General of GST Intelligence has busted this racket. Input tax credit (ITC) forgery through shell entities was detected by the GST unit during a raid operation.
This is how fraud of crores was done
During the search operation of GST department, a large number of forged/morphed/fake softcopy documents such as rent agreement, electricity bill, Aadhaar card, driving license, PAN card etc. were found in the seized laptop of a confidential office. These documents were used to create and operate their shell companies.
two people arrested
Finance Ministry said, ‘Forensic examination of laptops, equipment seized from the office in the raid finally revealed input tax credit fraud of Rs 863 crore, in which 461 shell companies were involved.
The team has also arrested two prominent people. The ministry said after preliminary investigation that the case of fraud in fake input tax credit has finally reached the iron and steel sector as well.