Bhubaneswar DGGI on Friday arrested 3 persons in connection with a GST fraud case of Rs 16.96 crore.
According to reports, the three accused issued fake invoices and fraudulently passed on an Input Tax Credit of Rs 16.96 crore without actually supplying goods.
The prime accused was operating as the partner and proprietor of two firms. He had issued many fraudulent invoices to various contractors. He also illicitly passed on fake ITC and earned commissions from the contractors on the invoice values. He manipulated GST provisions to create a web of bogus transactions, causing a significant revenue loss to the government.
The second accused, used to handle financial records and 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 third accused acted as the point of contact between the firms and contractors. He used to inquire about their invoice requirements, facilitate the issuance of fraudulent invoices, and collect commission payments in cash, which he later deposited into the proprietor’s bank account.
