Fake GST invoice scam; 215 people arrested, ₹700 cr recovered

The Directorate General of GST Intelligence (DGGI) has recovered more than ₹700 crore from the arrested 215 people and in the last two months. The individuals who have been arrested for GST fake invoice frauds and are fly-by-night operators who fraudulently avail, pass on and utilize input tax credit (ITC) in multi-layered scams. The GST intelligence authorities have also registered over 2,200 cases and have unearthed more than 6,600 fake GSTIN entities. “Out of the 215 arrests so far there are 71 masterminds, 81 proprietors, 36 director/managing directors, 15 partners, 3 CEOs, 6 chartered accountants and one each of company secretary, broker, and GST practitioner,” the statement said.

The recent usage of data analytics, data-sharing and AI along with BAFTA tools has helped the agency to detect fraudsters with precise inputs. The DGGI in its statement also said that the arrested include several managing directors and proprietors and partners of various business entities, according to the DGGI.

“Those arrested include managing directors, directors, proprietors and partners of various business and trade entities who are either involved in availing and/or utilizing the ineligible ITC fraudulently,” the statement further added. DGGI said that 17 people were arrested for fake invoice frauds. It said that most of the arrests were made from the Mumbai zone. It said that in the last two months 23 people were arrested from Mumbai. The officials also booked 14 people from Ahmedabad of which 8 had availed input tax credit of more than ₹113 crore through fake invoices in garments, copper waste scrap, medicines, ferrous waste and scrap, cement and coal.

A man in Delhi was charged for setting up more than 12 bogus farms. The man also availed input tax credit to the tune of Rs. 150 crore. Several other such fraudsters were arrested from Bengaluru, Bhubaneswar and Chennai. The DGGI said that it will continue investigations in all of these cases.