DGGI Arrests Raipur Businessman, Rs.80 Crore Fake Invoice Network Exposed
The Directorate General of GST Intelligence (DGGI) has uncovered a major GST evasion racket involving fake invoicing worth nearly Rs.80 crore, leading to an estimated tax evasion of about Rs.14 crore. A businessman based in Raipur has been arrested in connection with the case.
According to the investigation, the accused allegedly created and operated a network of dummy firms to issue fake GST invoices without actual supply of goods or services. These invoices were used to fraudulently avail and pass on Input Tax Credit (ITC) to various beneficiary entities.
DGGI officials found that the firms existed only on paper and had no real business activity, stock, or infrastructure. Bank accounts, GST registrations, and digital records were allegedly used to circulate invoices and rotate funds to give the transactions a genuine appearance.
The investigation revealed that the fake invoice network was spread across multiple entities, enabling wrongful ITC claims and causing significant loss to the government exchequer. During searches, officials seized documents, electronic devices, and other evidence supporting the alleged fraud.
Based on the material gathered, the accused was arrested under the provisions of the CGST Act, which allows arrest in cases involving serious tax evasion and fraudulent ITC claims. Further investigation is underway to identify beneficiary firms, accomplices, and additional revenue loss, if any.
DGGI has reiterated that it will continue strict action against fake invoicing, shell companies, and ITC frauds, and has warned businesses to ensure proper compliance and due diligence while claiming GST credits.
