Ahmedabad, 07-08-2019

 

Surat Zonal Unit of the Directorate General of GST Intelligence (DGGI) has busted one more racket involving issuance of fake / bogus invoices thereby fraudulently availing and utilizing Input Tax Credit (ITC) under the GST. Searches had been conducted at many places in this regard leading to unearthing the issue of fake / bogus invoices without supply of goods worth more than Rs. 42 crores with fraudulent ITC involving Rs. 7.7 crores. One, Aslambhai Sodagarbhai Shekh, being one of the kingpins of the racket has shown purchases from 19 different firms of which 16 firms were found to be non­existent During investigation, Mr. Shekh confessed that he has taken ITC on the basis of invoices issued by fake/bogus firms; that he has never met the so-called proprietors of these bogus firms and that he has taken ITC of Rs 7.7 Crores (approx.) on the basis of invoices of bogus firms without receipt of any goods.

The racket involves many more individuals and firms who are also under active investigation. As per the preliminary estimate the fake ITC of more than Rs. 100 crores has been issued without supply of goods by these bogus firms. During the course of investigation, 54 fake/bogus firms have been identified for cancellation of registration under the GST and 33 bank accounts linked with these firms have been provisionally attached.

Mr. Aslambhai Sodagarbhai Shekh was arrested & produced before the Hon'ble Chief Judicial Magistrate, Surat who sent him to judicial custody. Further investigation in the matter is on.

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