Nagpur: Cases involving fake transactions to the tune of over Rs2400 crore have been registered by the directorate general of goods and services tax intelligence’s (DGGSTI) Nagpur unit as on December 31. The Nagpur zone covers Vidarbha and Marathwada regions of the state.
The DGGSTI is the investigation wing of the central GST department.
According to the DGGSTI, 97 cases of fake invoices were registered till December end in Nagpur zone. It was found that fraudulent input tax credit (ITC) to the tune of Rs482 crore was claimed by business entities by booking fraudulent entries worth over Rs2400 crore in their books.
The fake transactions were recorded for sale of a whole gamut of commodities ranging from supari, (beetle nut), textiles to iron and steel by shell firms.
Sleuths found dummy firms registered by submitting fake documents to carry on the fraudulent ITC racket.
The DGGSTI has been recovered up to Rs57 crore out of the amount of ITC wrongly claimed in these cases, states a press release issued by the department.
The DGGSTI has made 21 arrests in these cases. As many as six cases accused had to remain in judicial custody for 46-60 days till bail was granted. “This was because the bail was rejected at different courts considering the gravity of the cases,” said a source. Those arrested include proprietors, partners and directors of the dummy entities.
ITC is the proportionate reduction in the final GST liability on the basis of duty paid during purchase of inputs or services by a firm. It has been found that fake purchases are being registered by businesses with the intention to claim fraudulent ITC. The DGGSTI special drive against fake claims continues.