In a shocking claim, the Directorate General of GST Intelligence (DGGI) said it has busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 220 crore to avail of input-tax credit. According to the DGGI, searches were conducted at several official and residential premises in Chennai and Coimbatore late last week during which it busted the racket and arrested two persons.
In a statement, Additional Director General K Balaji Majumdar said, “Several incriminating documents, including copies of fake invoices, issued on the letterheads of several firms that existed merely on paper, were seized.” The modus operandi was that several bogus companies and bank accounts were created using PAN and Aadhaar number of family members and employees, and complex transactions were made without the supply of goods.
According to the documents seized, fake invoices, covering goods worth more than Rs 220 crore, were issued without supply of goods. The officials seized cheque books with pre-signed cheque leaves pertaining to 45 bank accounts, rubber stamps in the name of 30 companies and computer hard disks. Two persons were arrested Saturday and the DGGI provisionally attached bank accounts that were operated by the impostors. The charges are of serious nature and such acts should be nipped in the bud. Only then, the objective of implementing GST can be fulfilled.