In a significant crackdown on tax evasion, the Directorate General of GST Intelligence (DGGI) has made substantial headway in the Financial Year 2023-24, uncovering 1,700 fraudulent Input Tax Credit (ITC) cases amounting to a staggering Rs. 18,000 crores. This concerted effort has resulted in the apprehension of 98 individuals involved in these nefarious activities, marking a significant stride in the fight against GST fraud in India.
The DGGI has intensified its focus on dismantling the networks behind fake ITC claims, utilizing advanced data analysis and technical tools to trace and apprehend tax evaders. These fraudulent syndicates often exploit unsuspecting individuals, manipulating their personal documents to establish fictitious firms without their consent or knowledge. In some instances, individuals knowingly participate in these schemes, lured by monetary incentives.
Highlighting some of the sophisticated operations unmasked by the DGGI:
– A major racket involving fake firms was unearthed in Sirsa, Haryana. The operation cantered around M/s. S.D. Traders, Delhi, a front that generated extensive E-way bills despite no actual business transactions. This led to the discovery of 38 non-existent firms and the arrest of a key operator, unveiling a potential Rs. 1,100 crore ITC fraud.
– In Jaipur, Rajasthan, an investigation into beneficiary firms revealed a complex network led by Ashutosh Garg of Ghaziabad, Uttar Pradesh. Garg’s operation involved the creation and sale of fake firms designed to facilitate the transfer of fraudulent ITC, cumulatively worth Rs. 1,033 crores, earning him commissions based on the taxable value.
– Another probe pinpointed a cluster of fake firms operating from West Sagarpur, Delhi. The operation, directed by several individuals from a base in Uttam Nagar, Delhi, managed 122 fictitious entities to pass on Rs. 315 crores in fake ITC. The culprits were arrested following a detailed investigation.
– The DGGI also exposed a scheme leveraging One Person Companies (OPCs) to commit ITC fraud, particularly in the service sector. A raid in Pitampura, Delhi, uncovered evidence of 190 fake firms and fraudulent ITC claims amounting to Rs. 393 crores. The orchestrator, found with multiple forged identity documents, was arrested, and remanded to judicial custody.
These cases underscore the DGGI’s commitment to combating GST fraud and safeguarding the nation’s financial integrity. Through meticulous investigation and the use of cutting-edge technology, the agency continues to identify and neutralize sophisticated tax evasion schemes, ensuring compliance and fairness in the GST ecosystem.
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Published on: February 13, 2024