Three Held In Odisha For Rs 16.96 Crore GST Fraud

Bhubaneswar: The Directorate General of GST Intelligence (DGGI) of the Bhubaneswar Zonal Unit has arrested three persons for their alleged involvement in issuing fake invoices and fraudulently passing on Input Tax Credit (ITC) amounting to Rs 16.96 crore without actual supply of goods.

As per a press statement issued by DGGI on Friday, the prime accused was operating as the partner and proprietor of two firms.

The law enforcement agency found during the probe that the prime accused had issued many fraudulent invoices to various contractors.

It also noted that the prime accused also illicitly passed on fake ITC and earned commissions from the contractors on the invoice values.

The investigation revealed that the accused manipulated GST provisions to create a web of bogus transactions, causing a significant revenue loss to the government.

“The second accused, who worked as an accountant in the said firms, was responsible for handling financial records, generating fake sales invoices, e-way bills, and other documents under the owner’s instructions. He played a crucial role in the execution of the fraudulent scheme and received remuneration from the commission earned through fake ITC transactions,” DGGI was quoted by IANS as saying.

Meanwhile, the third accused, a sales executive, acted as the point of contact between the firms and contractors.

He would inquire about their invoice requirements, facilitate the issuance of fraudulent invoices, and collect commission payments in cash, which he later deposited into the proprietor’s bank account.

“The DGGI remains committed to taking strict action against tax evasion and fraudulent ITC claims. This arrest serves as a strong warning to businesses engaging in such malpractices,” the DGGI added.

It advised the taxpayers to comply with the provisions of the GST law and refrain from participating in illegal transactions to avoid strict penal consequences.

DGGI, a law enforcement agency of the Ministry of Finance, collects, analyses, and shares intelligence about GST evasion.