GST authorities have uncovered a syndicate engaged in the illicit transfer of input tax credit (ITC) worth Rs 275 crore through 102 fraudulent businesses.
According to an official statement from the Ministry of Finance, the officers of the Directorate General of Goods and Services Tax Intelligence (DGGI) Meerut Zonal Unit have successfully dismantled a significant syndicate masterminded by four individuals. This achievement was made possible through meticulous data analysis and astute investigation.
The ministry further disclosed that the fraudulent invoicing syndicate issued invoices reflecting a taxable turnover of Rs 1,481 crore, leading to the unauthorized transfer of Input Tax Credit amounting to Rs 275 crore. This was executed through 102 fictitious companies, benefiting over 1,000 recipient firms.
One of the masterminds, employed by a placement consultancy firm, played a pivotal role in facilitating the acquisition of essential documents like PAN cards, Aadhaar cards, electricity bills, and address proofs necessary for GST registration. To accomplish this, the mastermind lured individuals with modest financial incentives in exchange for the surrender of their Know Your Customer (KYC) documents. These KYC documents were subsequently handed over to the other two culprits, who used them to create fictitious entities.
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