The Directorate General of GST Intelligence (DGGI), Ahmedabad, has unearthed a large-scale fake Input Tax Credit (ITC) fraud amounting to over Rs. 63 crore. Bhavesh Kumar Shani, a director of a Delhi-based company has been arrested in connection with the fraudulent billing network.
According to officials, the accused was involved in issuing fake invoices without the actual supply of goods or services, thereby enabling fake ITC claims. The investigation revealed that the company generated bogus e-invoices and passed on fake tax credits to multiple entities, causing substantial loss to the exchequer.
Authorities stated that the fraudulent transactions were primarily carried out under the guise of providing services such as mobile recharge and e-top-up services. However, no real services were rendered. Instead, the accused allegedly created a network of shell firms to circulate fake invoices and inflate ITC claims.
The probe further revealed that invoices worth over ₹728 crore were generated, involving tax evasion exceeding ₹131 crore. Out of this, approximately ₹63.21 crore of fake ITC was fraudulently passed on. A significant portion of these transactions was found to be non-genuine, with no underlying business activity.
Officials noted that the accused violated provisions under Section 132(1)(b) of the CGST Act, which deals with issuing invoices without supply of goods or services. The offence is considered serious and non-bailable, carrying a potential imprisonment of up to five years if proven guilty.
The DGGI has indicated that further arrests are likely as the investigation continues to uncover additional links in the fake invoicing network. Authorities are also examining financial trails and bank transactions to identify other beneficiaries and accomplices.
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