Persons accused in this GST Fraud have been charged under various sections of the stringent GUJCTOC (Gujarat Control of Terrorism and Organised Crime) Act, 2015
In a major crackdown, authorities have apprehended twenty key suspects involved in an alleged Goods and Services Tax fake billing fraud amounting to hundreds of crores. The accused have been charged under various sections of the stringent GUJCTOC (Gujarat Control of Terrorism and Organised Crime) Act, 2015, officials confirmed.
According to details provided by officials from the State Goods and Services Tax (SGST) Department, a collaborative effort with the Bhavnagar police revealed a scheme revolving around a new modus operandi. This involved obtaining fake registrations, fabricating bills for fictitious metal scrap companies, illicitly claiming Input Tax Credit (ITC), and evading taxes. The investigations have led to the arrest of 141 individuals across five separate police complaints, with the total fraud amounting to hundreds of crores.
The Bhavnagar Local Crime Branch officials highlighted that the 20 key conspirators in this case were already facing other criminal charges. Consequently, the police submitted an application to the Additional Chief Judicial Magistrate court in Bhavnagar on February 17, seeking to charge them under relevant sections of the GUJCTOC Act, 2015. The court approved the application, granting permission for further action by the police.
According to sources familiar with the investigation, the accused targeted vulnerable individuals, guiding them to Aadhaar centres where they tampered with the registered mobile numbers. These altered Aadhaar cards were then used by the suspects to fraudulently obtain Goods and Services Tax numbers (GSTNs) and PAN cards, facilitating their illicit activities. Officials have identified a total of 13,345 bogus GSTINs, with 4,308 registered in Gujarat and the rest in states such as Maharashtra, Delhi, Bihar, among others.
The SGST officials have initiated the process of cancelling these fraudulent GSTINs in Gujarat, while authorities in other states have also been alerted. Investigations are underway to ascertain the beneficiaries of the Input Tax Credit (ITC) acquired through the use of these counterfeit GSTINs.
This significant operation marks a crucial step in curbing fraud, bringing to light a sophisticated network of fraudsters and their illicit activities involving massive sums of money.
To Access the GST Advisory No. 624 dated. 21 February 2024 CLICK HERE
Also Read
Extortion on GST: 3 Persons Arrested While Pretending and Demanding Money as GST Officers
Self-Certified Copy Rule Does Not Apply to Electronically Filed Appeals under GST: Allahabad HC