Cracking Down on Fake ITC Fraud: ED's Major Blitz Unveils GST Manipulation

The Enforcement Directorate has uncovered a significant fake ITC fraud involving large MNCs. The nationwide probe, spanning several states, has revealed misuse of GST frameworks through bogus invoicing and fraudulent financial transactions, implicating numerous firms and highlighting systematic abuse of the tax system.

The Enforcement Directorate (ED) has revealed details of a sweeping investigation into a multi-crore fake input tax credit (ITC) fraud, uncovering significant involvement of major multinational corporations. The probe exposed intricate layers of GST misuse through fraudulent transactions and imaginary invoicing.

Conducting raids across multiple Indian states including Arunachal Pradesh, Delhi, Haryana, Tamil Nadu, and Telangana, the ED has alleged that firms like Amit Traders and Shree Ram Enterprises played central roles in this deception. Operations spread across numerous businesses have brought to light detailed planning to manipulate the tax system.

These operations seized bank balances, property documents, and crucial evidence, indicating a sophisticated abuse of the GST framework. Key players have admitted to creating false turnovers and fabricating records, prompting the ED to commit to a deeper investigation into these fraudulent practices influencing the Indian tax ecosystem.

(With inputs from agencies.)