In a nationwide drive against GST fake invoices, the Directorate General of GST Intelligence (DGGI) and the CGST Commissionerates have arrested 104 persons so far. This drive lasted for three weeks.
Allegations against the arrested persons include illegally availing or passing on input tax credit (ITC) fraudulently through fake entities, fly-by-night firms and circular trading. So far, a total of 1,161 cases have been booked against 3,479 fake GSTIN entities. During the drive, searches and surveys were conducted in more than 38 cities/metros. “Further investigations in these cases are in progress to unravel the network and multiple chains of fake invoices’ benefactors and, also, to ascertain the exact amount of tax evasion and usurpation by these fake entities and fraudsters,” a senior Finance Ministry official said.
In Mumbai, the Session Court rejected the bail application of Sunil Ratnakar Gutte, son of a sitting MLA and Managing Director of Sunil Hi-tech, who was arrested on the basis of multiple documentary evidences along with his business associate Vijendra Ranka in a fake invoice scam worth of ₹520 crore of ITC. The ACMM Court at Esplanade, Mumbai extended his remand up to December 8.
It may be recalled that Sunil Hi-tech Engineers Ltd has been engaged in availing and utilising ITC based on bogus invoices, issued without any supply/receipt of goods/services. It was revealed that the firm has availed fraudulent ITC to the tune of ₹304 crore from multiple entities and has passed on fraudulent ITC to the tune of ₹216 crore to multiple entities, based on bogus invoices issued, without any receipt/supply of goods/services.