As part of the ongoing drive against fake invoices, Directorate General of GST Intelligence’s (DGGI) Nagpur unit conducted multiple searches in Delhi-NCR during the first week of this month, to target 11 entities operating in the NCR that had made fake supplies to Maharashtra-based entities.
The targeted searches showed that these 11 entities were non-existent at the declared addresses which were found to be religious places, residences of unrelated persons or non-existent on the ground, DGGI Nagpur said in a statement.
In the first fake invoice network, six of these 11 NCR-based entities had made bogus transactions of goods with the Nashik- and Dhule-based entities, while four of them shared common Permanent Account Numbers (PANs) with other entities.
These 10 NCR-based entities had themselves availed fraudulent input tax credit of Rs 315.65 crore and passed on a part of this fraudulent ITC to the Nashik- and Dhule-based entities.
In another fake invoice network, an NCR-based entity had passed on fraudulent input tax credit of Rs 145.69 crore without any corresponding inward supplies. And, a large part of this fraudulent ITC was passed on to some entities of the first network that had further passed on this fraudulent ITC to the Nashik- and Dhule-based entities.
Thus, the two major fake invoice networks, consisting of 11 NCR-based entities operating between Nashik/Dhule and NCR, engaged in fraudulent transactions of about Rs 2,563 crore involving fake ITC of Rs 461.34 crore.