Fake GST Invoice Racket Busted; Kingpin Held, Another On Run


Cuttack: The State GST Enforcement sleuths today arrested the mastermind of a fake GST invoice racket, identified as Sandeep Mohanty, for evading Rs 510.28 crore tax.

The Enforcement Wing came to know about the fraud in respect of 22 fictitious firms during a statewide search operation yesterday.

Three goods vehicles carrying the goods on the strength of fake invoice issued by the mastermind have also been seized at Jeypore in Koraput district. The other accused involved in this GST fraud is absconding, said an official statement issued by Commissionerate of CT & GST, Odisha (Cuttack).

Sandeep Mohanty, the kingpin in the tax fraud, in collusion with others, has availed bogus input tax credit (ITC) worth Rs 27.21 Crores raising fake purchase invoices worth Rs166 Crores in the name of 22 fake business entities created and operated by him. He is also found to have passed bogus input tax credit (ITC) worth Rs 61.79 Crores on the strength of fake invoices worth Rs 344 Crores to the recipients of both inside and outside the State of Odisha against the sale of goods purchased fictitiously and has defrauded the state exchequer. The GST fake invoices worth Rs510 Crores have been arranged / issued within a short span of time.

The damage caused to the state revenue would have been manifold had the fraud not been detected at the early stage by the Enforcement Wing. During interrogation, the mastermind has admitted to have created few other dummy firms for issue of fake invoices and passing of bogus ITC through them in future. The registering authorities have been moved to cancel the registration certificates of the fictitious firms immediately.

The offences committed are cognizable and non-bailable offence u/s 132 (1) (b) (c) & (I) of OGST Act, 2017 read with section 132(5) of the said Act and is punishable U/s 132(1)(i) of the OGST Act, 2017.

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