Two Delhi-Based Scamsters Arrested In Bhubaneswar For Rs 300 Crore GST Fraud

Bhubaneswar: The directorate general of goods and services tax intelligence (DGGI) in Bhubaneswar has arrested two fraudsters, based put of Delhi, in connection with a fake input tax credit (ITC) scam.

The duo allegedly availed Rs 300 crore in tax benefits by floating 50 fictitious companies in different states. They are said be the masterminds of this massive scam committed by creating fake companies using Aadhaar and PAN cards of poor individuals without their knowledge, and then claiming to be involved in purchasing items like motor parts and shoes and later exporting them to Nepal.

The accused raised false tax invoices of over Rs 300 crore against the fake exports and pocketed the money illegally, causing huge loss to the exchequer, reports said quoting DGGI sources.

A trap was laid to nab the accused when they arrived here from the national capital on Wednesday. “They had already availed Rs 1 crore ITC by producing fake invoices. They landed in Bhubaneswar to take a refund of another Rs 1 crore by submitting fake invoices,” the sources added.

ITC refers to the tax on purchase of goods or services deducted from the tax payable on outward supplies.

While the DGGI has intensified efforts to curb Central GST frauds, it has urged citizens to remain vigilant and report such suspicious activities.