DG GST intel busts crime syndicate based in 19 states

Kolkata: In a continuing drive against syndicates operating and managing fake firms, the Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit has busted a major crime syndicate based in 19 states and arrested one of the masterminds.

According to sources, a total of 127 shell companies were created and a huge amount of fake ITC of approximately Rs 126.9 crore was passed on during the fiscal 2021-22 and 2022-23.

Human intelligence was developed through extensive market surveillance and further developed by data analysis to strike at the entire syndicate. The officials of DGGI, Kolkata were able to trace this mastermind and nabbed him. The person has admitted his indulgence in fraudulent activities.

In this case, the mastermind behind running the above racket created shell firms/companies and got GST registration for fake entities by procuring Aadhaar, PAN, photographs etc from individuals at a minor cost.

The mediators confirm regarding existing/fake entities to which fake invoices are to be issued, without actual supply of goods and or services, with the sole intention of earning commission on total invoice value and for passing on fake input tax credit.

They issued fake e-way bills using fake vehicle numbers from local brokers and entered the same in invoices with a hidden motive to camouflage the fraudulent Input Tax Credit (ITC) that was passed on and thereby aiding their recipient entities to avail fake ITC.

Three mobile phones and two laptops have been seized in the operation. The person arrested was produced before Additional Chief Judicial Magistrate, Sealdah and was remanded to r judicial custody.

DGGI, Kolkata Zonal Unit along with DGGI (SNU) East in less than four months of this financial year 2023-24, have busted four syndicates of fake invoices with total detection of Rs 535 crore involving 156 shell firms/companies and 5 persons playing the role of mastermind have

been arrested.