Latest news with #DirectorateGeneralofGSTIntelligence
Hindustan Times
3 days ago
- Business
- Hindustan Times
Punjab: Mastermind behind ₹30-crore GST scam arrested
The Chandigarh zonal unit of the Directorate General of GST Intelligence (DGGI) claimed to have busted a network reportedly involved in generating fraudulent Input Tax Credit (ITC) through the issuance of invoices without the actual supply of goods. The mastermind, identified as Manmohan Singh of Ludhiana, has been arrested, it said. GST officials said the fraud involved multiple business entities, including M/s JHA and JHA Enterprises (Delhi), M/s Goyal Trading Agency (Delhi), M/s MAA Vaishno Enterprises (Delhi), M/s SS Enterprises (Ludhiana), M/s PC Techno Solutions (Ludhiana) and M/s PMI Smelting Private Limited (Ludhiana). These firms were found issuing fake invoices for zinc products, the DGGI mentioned. Preliminary analysis indicates a widespread network of bogus firms with the quantum of fraudulent Input Tax Credit currently estimated at approximately ₹30.21 crore. This figure is expected to rise as the investigation progresses. Investigations revealed that Manmohan Singh was actively involved in establishing and operating this racket, creating the aforementioned firms to generate and avail ineligible ITC. Furthermore, it has been uncovered that Singh, in collusion with other individuals under the agency's scanner, allegedly facilitated banking transactions and arranged cash movements in exchange for commissions to enable these illicit activities. An official said that Manmohan has been remanded to judicial custody. 'Such fraudulent activities pose a severe threat to the integrity and efficacy of the indirect taxation framework, undermining the foundational principles of transparency, equity and voluntary compliance. The generation of fictitious invoices and wrongful ITC claims not only distort market equilibrium by placing bona fide taxpayers at a competitive disadvantage but also results in significant revenue loss to the exchequer,' he added.
Indian Express
3 days ago
- Business
- Indian Express
DGGI Chandigarh busts Rs 30-cr fake ITC scam; mastermind held
The Directorate General of GST Intelligence (DGGI), Chandigarh Zonal Unit, has unearthed a major fake Input Tax Credit (ITC) racket involving bogus invoices and non-existent supplies. The alleged mastermind, Manmohan Singh, has been arrested and remanded in judicial custody. Officials said the racket revolved around several shell firms — M/s JHA and JHA Enterprises, M/s Goyal Trading Agency, M/s MAA Vaishno Enterprises, M/s SS Enterprises, M/s PC Techno Solutions, and M/s PMI Smelting Private Limited — which were primarily issuing fake invoices for zinc products. The estimated quantum of fraudulent ITC is currently pegged at Rs 30.21 crore and is likely to increase as the investigation progresses. Preliminary findings revealed that Manmohan Singh not only floated these bogus entities but also orchestrated the issuance of fake invoices to generate and avail ineligible ITC. He is also alleged to have coordinated banking transactions and cash movements in exchange for commissions, in collusion with other individuals who are now under the scanner. Given the scale of the fraud and the possibility of evidence tampering, Singh was sent to judicial custody. In a statement, the agency said the case underscores the department's commitment to tackling tax evasion and maintaining the integrity of the Goods and Services Tax (GST) system. 'Fraudulent ITC claims through fictitious invoicing not only distort market competition by disadvantaging genuine taxpayers but also result in significant revenue loss to the exchequer,' the DGGI said. Officials warned that such activities undermine the transparency and equity of the GST regime, affecting the government's ability to fund public welfare schemes, infrastructure, and development initiatives. The DGGI added that it is intensifying enforcement through technological surveillance and strategic intelligence gathering to detect and deter such frauds. Inter-agency collaboration and public awareness are also being emphasised as key tools in combating economic offenses. Further investigation is underway, and more arrests and recoveries are expected.
Time of India
4 days ago
- Business
- Time of India
Directorate General of GST Intelligence busts Rs 30cr fake ITC network
Chandigarh: In a crackdown on financial fraud, the Directorate General of GST Intelligence (DGGI), Chandigarh Zonal Unit, on Friday claimed to have busted a network involved in generating fraudulent input tax credit (ITC) through the issuance of invoices without the actual supply of goods. Tired of too many ads? go ad free now Preliminary probe indicated a widespread network of bogus firms, with the quantum of fraudulent ITC currently estimated at approximately Rs 30.21 crore. The authorities anticipate the figure to increase as the investigation progresses. The intricate scheme involved multiple business entities, including a smelting firm located in Ludhiana, found to be issuing fake invoices for zinc products. The investigation has resulted in the arrest of the alleged mastermind, Manmohan Singh, who was instrumental in establishing and operating this racket, creating the aforementioned firms to generate and avail ineligible ITC. Manmohan is alleged to have colluded with other individuals, currently under the agency's scanner, to facilitate banking transactions and arrange cash movements in exchange for commissions to enable these illicit activities. The firms included JHA and JHA Enterprises, Goyal Trading Agency, MAA Vaishno Enterprises, SS Enterprises, PC Techno Solutions, and PMI Smelting Private Limited. "Given the severity of the offense, the substantial financial fraud involved, and the potential for evidence tampering and witness influence, Manmohan Singh has been remanded to judicial custody," said an official spokesperson of the DGGI. The spokesperson said the DGGI was committed to check tax evasion and preserve the integrity of the Goods and Services Tax (GST) system. The DGGI highlighted that such fraudulent activities not only distorted market equilibrium by disadvantaging legitimate taxpayers but also resulted in significant revenue loss to the exchequer, impacting govt resources for public welfare and infrastructure development. Earlier this month, a Ludhiana-based electronics firm was accused of a GST scam on iPhone supply, involving fake invoices, fraudulent companies, and non-existent supplies. Tired of too many ads? go ad free now Four individuals had been booked for the alleged fraud under the relevant sections of law and under the GST Act. The scheme encompassed the creation of fake invoices, establishment of fraudulent companies, and declaration of non-existent iPhone supplies. It underscored the persistent challenge posed by illicit input tax credit (ITC) schemes, which leverage fictitious entities to transmit ITC without the genuine supply of goods. MSID:: 121520244 413 |
Time of India
24-05-2025
- Business
- Time of India
DGGI unveils 643 cr GST fraud, prime accused held
Visakhapatnam:In a major operation, officers from the Directorate General of GST Intelligence (DGGI), Visakhapatnam zonal unit, apprehended an individual involved in a 643.81 crore fraudulent invoice scheme. Tired of too many ads? go ad free now The fraud resulted in a 115.88 crore loss to the govt treasury through unlawful GST input tax credit claims. The suspect allegedly set up shell companies using misappropriated identities, executing fraudulent operations across Andhra Pradesh, Tamil Nadu, and Karnataka. According to the additional director of DGCI-Visakhapatnam zonal unit, N Mohammad Ali, the accused generated unauthorised input tax credit claims and issued false invoices without actual goods or services transactions to unlawfully reduce GST obligations. The perpetrator established over 302 fictitious firms using stolen identities, enabling recipient companies to avoid tax payments and misappropriate substantial funds from the public treasury. DGGI Visakhapatnam Zonal Unit's investigation revealed a web of non-existent businesses that were registered solely for issuing fraudulent invoices and claiming unwarranted tax credits. Following operations across Andhra Pradesh, Karnataka, and Tamil Nadu, authorities arrested the primary suspect, Aboobakr Siddique Syed, a resident of Pernambut in Vellore, in Bengaluru under section 69 of the CGST Act-2017.
Hans India
24-05-2025
- Business
- Hans India
Key suspect arrested for creating bogus invoice worth hundreds of crores of rupees
Visakhapatnam: In a significant breakthrough, officers of the Directorate General of GST Intelligence (DGGI), Visakhapatnam zonal unit, arrested an individual, who allegedly generated bogus invoices worth Rs 643.81 crore, responsible for a massive Goods and Services Tax (GST) input tax credit fraud, leading to a loss of Rs 115.88 crore to the government exchequer. The accused is believed to have masterminded a complex scheme involving creation of shell entities, companies using stolen identities of unsuspecting individuals, operating his network in the states of Andhra Pradesh, Tamil Nadu and Karnataka. The fraud was orchestrated by the accused to generate fraudulent input tax credit claims, which were subsequently passed on to other businesses by generating bogus invoices without underlying supply of goods or services, to illegally reduce GST liabilities. The accused created more than 302 firms with the stolen identities, allowed the receiving firms of these invoices to evade tax payments and divert substantial sums of money by defrauding the public exchequer. The investigation led by the DGGI Visakhapatnam zonal unit, uncovered a network of fake businesses that existed only on paper. These companies did not conduct any legitimate business activities but were utilised as vehicles for issuing false invoices and claiming unearned tax credits. Following search operations in Andhra Pradesh, Karnataka and Tamil Nadu, the authorities arrested the accused and the key suspect, Aboobakr Siddique Syed, in Bengaluru, under section 69 of CGST Act-2017. After taking a transit remand, the accused, native of Pernambut, Vellore, was brought to Visakhapatnam and produced before the Special Judge Economic Offences Court, Visakhapatnam. The court has remanded the person to judicial custody for 14 days. Further investigation is under progress.
