Directorate General of GST Intelligence (DGGI) Headquarters booked a case on 3^rd March 2020 against M/s Fortune Graphics Limited, M/s Reema Polychem Private Limited & M/s Ganpati Enterprises.

The aforesaid companies/ firms are involved in issuance of invoices without any actual supply of goods. This case was detected and developed by officers on further data analytics out of a case booked against one of the exporters, namely, M/s Anannya Exim, which was covered in the all India operation launched by DGGI-DRI on 11.09.2019, against various exporters for fraudulently claimed IGST refund on the strength of ineligible ITC. 

During investigation, it was revealed that M/s Fortune Graphics Limited, M/s Reema Polychem Private Limited & M/s Ganpati Enterprises have issued invoices worth more than ₹ 4,198 Crores wherein Tax amount of more than ₹ 660 Crores has been fraudulently passed on as ITC credit to buyers of such fake invoices. It is also understood that, in the past, Directorate of Revenue Intelligence have booked a case of diversion of duty-free goods imported under Advance authorisation scheme by M/s Reema Polychem Pvt Ltd.

One of the directors of M/s Reema Polychem Private Limited has been arrested on 04.03.2020 under Section 69(1) of CGST Act, 2017 for offences under the provisions of Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017. Role of other directors of these three firms is under investigation.

Further investigations are in progress.

Issuance of fake invoices prompts arrest and GST investigation into fraudulent ITC and IGST refund claims. DGGI initiated an investigation into the issuance of fake invoices by three firms that enabled buyers to claim ineligible ITC and facilitated fraudulent IGST refund claims; data analytics tied the conduct to a prior exporter operation and identified large aggregate invoice values and tax credits. A director was arrested under Section 69(1) CGST Act in connection with alleged offences under Sections 132(1)(b) and 132(1)(c), while investigations into other principals and related diversion of duty free imports continue.