Massive ITC Fraud Detected by DGGI: 1700 Cases with Rs. 18000 Crores of ITC Evasion Detected this Year & 98 Arrested
DGGI Unveils Massive ITC Fraud: According to a recent press release of Ministry of Finance on 3 February 2024, during the current Financial Year 2023-24, the Directorate General of GST Intelligence (DGGI) has successfully uncovered a staggering 1,700 fraudulent Input Tax Credit (ITC) cases, amounting to a colossal Rs. 18,000 crores. With 98 arrests made up to December 2023, the relentless efforts of DGGI have focused on dismantling tax syndicates operating nationwide.
Advanced Data Analysis Unveils Tax Evasion Networks
Utilizing cutting-edge data analytics and advanced technical tools, the DGGI identified and apprehended key players in tax evasion schemes. The syndicates often exploit individuals, luring them with promises of jobs, commissions, or bank loans to obtain Know Your Customer (KYC) documents. These documents are then used without consent to establish fake or shell firms, leading to the creation of fictitious entities involved in fraudulent ITC activities.
Four Major Cases Unearthed by DGGI during this year
Sirsa, Haryana – Rs. 1,100 Crores ITC Evasion
DGGI uncovered a well-organized racket operating from Sirsa, Haryana, with the analysis revealing 38 fake firms and potential ITC evasion of Rs. 1,100 crores. The arrest of Mr. Manoj Kumar, a key operator, shed light on the intricate network of fake firms.
Jaipur, Rajasthan – Rs. 1,033 Crores ITC Evasion
DGGI booked cases against a beneficiary firm in Jaipur, Rajasthan, involved in availing ITC from 294 fake firms in Sonipat, Haryana, and Delhi. Mr. Ashutosh Garg, the mastermind behind M/s. Shree Jee Spices, was arrested for orchestrating the creation and operation of fake firms, passing on fake ITC totalling Rs. 1,033 crores.
Sagarpur, New Delhi – Rs. 315 Crores ITC Evasion
Intelligence led to the discovery of an IP address used for filing GST returns for unrelated/fake firms in Sagarpur, Delhi. The subsequent search revealed 122 fake firms, and the masterminds, including Mr. Mukesh Kumar Jha, admitted to creating and operating these firms, resulting in a fake ITC of Rs. 315 crores.
Pitampura, New Delhi – Rs. 393 Crores ITC Evasion
DGGI uncovered a complex ITC fraud involving 190 fake firms in Pitampura, Delhi. The investigation led to the arrest of Mr. Rahul, instrumental in operating the fake firms, with forged PAN cards and Aadhar cards used for obtaining Digital Signatures. The total ineligible ITC passed on amounted to Rs. 393 crores.
Conclusion
The relentless pursuit of DGGI in identifying and apprehending tax evaders has led to significant breakthroughs in uncovering fraudulent ITC cases. The use of advanced data analysis and technical tools reinforces the commitment to ensuring the integrity of the GST system. The arrests made in these four major cases highlight the agency’s dedication to dismantling tax evasion networks across the country.
To Download the Press Release CLICK HERE
To Access the Budget 2024 Highlights on Taxes CLICK HERE
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