New Delhi, Aug 30 (PTI) GST Intelligence wing has uncovered a fraud involving issuance of fake invoices valued at Rs 145 crore, resulting in alleged tax evasion of about Rs 43 crore, and arrested one person, the finance ministry said on Saturday.

Preliminary findings of the case detected by the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, indicate that a group of people created fake GST registrations using forged documents and availed of and passed on fraudulently-availed input tax credit (ITC).

During the search of the accused's premises, officers recovered several documents/ evidences, including a mobile phone, forged documents, fictitious Aadhaar cards and photographs of signboards of non-functional units. The investigation further indicates the use of shell entities with no genuine business operations to generate fake invoices and e-way bills.

"The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has registered a case and uncovered a GST fraud involving the issuance of fake invoices valued at approximately Rs 145 crore, resulting in alleged tax evasion of about Rs 43 crore. One individual has been arrested in connection with the case," the statement said. PTI JD MR

GST fraud through fake registrations and invoices leads to enforcement action and seizure of documentary and digital evidence. Detection of systemic GST fraud through false registrations and fictitious invoices to illegally claim and pass on input tax credit. Investigators found forged identity and registration documents, photographs of non operational premises, and evidence of shell entities generating fake invoices and e way bills; searches recovered mobile devices and documentary evidence. Enforcement action by the Directorate General of GST Intelligence included case registration, seizure of materials, and at least one arrest.