GST: Pune-based fake invoices racket busted

By: |
October 27, 2020 8:09 AM

Sources said that illegal activities like these emphasised the need for arrest provision in the GST law which is currently being challenged in various courts by multiple parties.

The accused was finally arrested from a remote village in Osmanabad district of Maharashtra.

The Directorate General of GST Intelligence (DGGI) has arrested a Pune-based person engaged in trading fake invoices in exchange for commissions from businesses which would then use these to fraudulently avail input tax credit (ITC), sources in the finance ministry said.

The total GST evasion was worth over Rs 250 crore and invalid ITC availed, over Rs 52 crore.

Sources said that illegal activities like these emphasised the need for arrest provision in the GST law which is currently being challenged in various courts by multiple parties.

Further, sources said that the mandatory use of Aadhaar for GST registration registration would prove effective to check fake firms.

Additionally, government is also mulling putting these dubious firms under risk category and to block their refunds, besides other appropriate legal actions.

The arrested person, Tushhar Ashok Munoat, has admitted to having floated dummy companies registered with GST from various states, sources said.

Investigation into these firms through data analytics revealed the scam which was followed by a search operation at the premises of these firms but none of them was conducting business from given addresses.

Most of the fake invoices issued belonged to transactions related to supply of construction service and works contract service among others.

The accused was finally arrested from a remote village in Osmanabad district of Maharashtra.

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