The Directorate-General of GST Intelligence (DGGI) Officers of Bengaluru zone have arrested four persons, including a chartered accountant, for their alleged involvement in issuing GST invoices without supplying goods, leading to wrongful utilisation of Input Tax Credit, in Bengaluru. The arrested issued invoices worth ₹2,364 crore, on which credit of approximately ₹385 crore was passed on.

According to a release, simultaneous searches were carried out on several business and residential premises in Bengaluru and New Delhi, by the officers of DGGI and Central GST Commissionerates on May 21. Several incriminating documents, including copies of fake invoices issued by firms, were seized. The arrested created several bogus entities and registered them under CGST Act, 2017, using PAN, electricity bills, bank cheques, photographs of their family members, employees and friends, and a complex maze of transactions was created using banks, without supplying any good. These invoices covered purported supply of goods such as TMT bars and cement. The transactions were done in collusion with the chartered accountant, who allowed the masterminds of the fraud to use his personal bank accounts as well as that of his family members and also a Delhi-based businessman, who has been dodging several law enforcement agencies.

The release said two of the arrested persons have also been found to be complicit in clandestine supply of goods, especially fast moving consumer goods without issuing invoices. While doing so, they indulged in issuing invoices to some other customers, without supplying any goods, thereby passing on the credit irregularly and leading of loss of revenue to government.