Two Scamsters From Delhi Arrested In Bhubaneswar For Rs 300 Crore GST Fraud
In connection with a fake input tax credit (ITC) scam, the directorate general of goods and services tax intelligence (DGGI) in Bhubaneswar has arrested two fraudsters based in Delhi.
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Bhubaneswar: In connection with a fake input tax credit (ITC) scam, the directorate general of goods and services tax intelligence (DGGI) in Bhubaneswar has arrested two fraudsters based in Delhi.
The pair allegedly obtained Rs 300 crore in tax benefits by establishing 50 fictitious companies in various states. They are said to be the masterminds behind this massive scam, which involved creating fake companies using poor people's Aadhaar and PAN cards without their knowledge, then claiming to be involved in purchasing items such as motor parts and shoes and later exporting them to Nepal.
According to reports citing DGGI sources, the accused raised false tax invoices of over Rs 300 crore against the fake exports and illegally pocketed the money, causing a huge loss to the exchequer.
When the accused arrived here from the national capital on Wednesday, a trap was set for them. "They had already received Rs 1 crore in ITC by fabricating fake invoices." They arrived in Bhubaneswar to claim another Rs 1 crore in refunds by submitting fake invoices," the sources added.
The ITC is the tax deducted from the tax payable on outward supplies on purchases of goods or services.
While the DGGI has increased its efforts to combat Central GST fraud, it has also urged citizens to be vigilant and report any suspicious activity.
