Maharashtra: DGGI arrests 4 for creating fake businesses; availing input tax credit of Rs 10.79 crore

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The Nagpur zonal unit of the Directorate General of GST Intelligence (DGGI) has arrested four persons for allegedly creating fake business entities and availing fraudulent input tax credit of Rs 10.79 crore, an official said on Thursday.

As a part of the ongoing drive against fake invoices and non-existent entities, officials of the Nagpur zonal unit conducted multiple searches in and around Nagpur, a release issued by the DGGI stated.

The agency had received tip-offs about four entities, which were non-existent at the declared addresses and had uploaded forged documents as proof of business, he said.

All four entities had uploaded the same set of forged documents and had taken GST registration on the same addresses, which indicated that they were fake, the official said.

"An analysis of documents revealed that these fake entities had engaged in fictitious transactions of over Rs 53.95 crore, availed fraudulent input tax credit (ITC) of Rs 10.79 crore, and had passed on this fraudulent ITC to other entities. In the fictitious transactions, these entities had deceptively shown goods as trading of iron and steel," a release issued by the DGGI stated.

Four persons, who were proprietors of the fake businesses, were traced and apprehended in the last two days, the official added.

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