In an investigation initiated by the Officers of Directorate General of GST Intelligence, Belagavi Zonal Unit, Search and Inspection proceedings were carried out at 3 premises located in Bellary, Karnataka. The investigation has uncovered GST fraud amounting to Rs 16 crore and the one person was arrested in connection with the case.

The investigation, involving search and inspection at multiple locations, has revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit (ITC) transactions. During the Search proceedings invoices involving availment and passing on of fraudulent Input Tax Credit (ITC) of Rs 16 crore was uncovered.

The accused had set up shell entities with no legitimate business operations, generating fake invoices and e-way bills. The data analysis done in respect of the transactions has given substantial grounds regarding the fraudulent nature of activity done by the accused.

The arrested individual is the mastermind behind creating and managing these shell entities. The mastermind floated shell companies with no actual business activities for availing and passing on the benefit of ITC. During the search proceeding at the Principal Place of Business, incriminating documents were found and seized. The mastermind used forged Rental Agreement, letter head etc. to create these shell companies and used personal documents like Aadhar, PAN etc. of his employees for carrying out the fraudulent activity. The mastermind has been arrested and produced before the Hon’ble Court wherein the mastermind was sent to Judicial Custody.

Further investigation is under progress.

 

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(Release ID: 2152896)