The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit has registered a case and uncovered a GST fraud involving 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.

Preliminary findings indicate that a group of people created fake GST registrations using forged documents and availed and passed on fraudulently availed 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 accused was arrested under Section 69 of the CGST Act, 2017 in Bengaluru and produced before the Special Court for Economic Offences, which granted transit remand for his transfer to Belagavi. He was subsequently produced before the Judicial Magistrate, Belagavi, and has been remanded to judicial custody for seven days.

Further investigation is in progress.

GST fraud via fake invoices and fraudulent input tax credit leads to arrest and ongoing investigation under Section 69. Investigation by the DGGI Belagavi uncovered issuance of fake invoices, forged GST registrations and use of shell entities to fraudulently avail and pass on input tax credit; seized evidence included forged documents, fictitious identity cards and electronic devices. An individual was arrested under Section 69 of the CGST Act, 2017 and remanded to judicial custody while further investigation continues.