Massive GST Fraud Exposed by DGGI Pune: Rs 1,196 Crore Scam Unraveled

The Directorate General of GST Intelligence (DGGI) Pune has uncovered a GST fraud network worth Rs 1,196 crore, arresting one individual. Investigations revealed bogus companies utilizing fraudulent ITC transactions. The network used fake invoices and shell entities, implicating numerous individuals unaware of legal ramifications.

The Directorate General of GST Intelligence (DGGI), Pune Zonal Unit, has made a significant breakthrough by uncovering a colossal GST fraud amounting to Rs 1,196 crore. This investigation has led to the arrest of an individual linked to the scam, which involved multiple searches across Pune, Delhi, Noida, and Muzaffarnagar.

Authorities have discovered a sophisticated network of bogus companies involved in fraudulent Input Tax Credit (ITC) transactions. The arrested suspect, identified as the mastermind and the director of a private firm in Muzaffarnagar, allegedly set up shell entities with no legitimate business operations. These entities issued fake invoices and e-way bills, which lacked RFID movements, proving the nonexistence of actual goods supply.

The investigation revealed that the fraudsters meticulously maintained a database of addresses, identities, email IDs, and phone numbers to secure new GST registrations and evade detection. Misusing personal data of unaware individuals, the network engaged in circular trading, acting both as suppliers and recipients within a cartel to perpetrate ITC fraud. Authorities have identified 20 fake companies, frozen a related bank account, and seized evidence pointing to a centralized control over multiple shell firms.