Three persons arrested for passing on fraudulent ITC of Rs 16.96 crore in Bhubaneswar
BHUBANESWAR: The directorate general of GST intelligence (DGGI), Bhubaneswar zonal unit, has arrested three persons for their alleged involvement in issuing fake invoices and fraudulently passing on input tax credit (ITC).
Sources said the three accused had pocketed ITC amounting to `16.96 crore by issuing forged invoices without actual supply of goods. The prime accused, was operating as the partner and proprietor of two firms and found to have issued fraudulent invoices to various contractors. He illicitly passed on fake ITC and earned commissions on the invoice values by doing so.
The DGGI, however, did not disclose the names of the accused and the firms involved. The investigation revealed that the accused manipulated GST provisions to create a web of bogus transactions, causing a significant revenue loss to the government.
The second accused, worked as an accountant in the firms and was responsible for handling financial records, generating fake sales invoices, e-way bills, and other documents under the owner’s instructions. He played a crucial role in the execution of the fraudulent scheme and received remuneration from the commission earned through fake ITC transactions, the sources said.
The third was employed as a sales executive and acted as the point of contact between the firms and contractors. He had inquired about their invoice requirements and facilitated the issuance of fraudulent invoices. He had collected commission payments in cash, which he later deposited into the proprietor’s bank account. The DGGI has urged taxpayers to comply with the provisions of the GST law and refrain from participating in illegal transactions to avoid strict penal actions.
