A large-scale fake GST registration racket has been busted in Gurugram, revealing a sophisticated operation involving fraudulent invoices and illegal ITC claims, leading to the arrest of a key individual.
Key Points
- CGST Gurugram uncovered a fake GST registration racket operating in North Delhi.
- The racket involved creating 24 fake firms and generating fraudulent invoices worth ₹734.95 crore.
- The fraudulent activities led to illegal ITC availment of ₹143.05 crore and passing on of ITC amounting to ₹174.72 crore.
- One key individual was arrested and sent to judicial custody in connection with the GST fraud.
- The accused misused a job portal, "Job Hai", to source KYC documents for creating fake GST registrations.
The Central Goods and Services Tax (CGST), Gurugram conducted coordinated search proceedings at multiple premises in North Delhi in connection with an investigation into a large-scale fake GST registration racket, an official said on Tuesday.
According to an official statement, a fake GST registration racket was being operated by means of taking registrations using forged documents.
These documents were thereafter misused for obtaining GST registrations of fake firms without the knowledge of the unsuspecting individuals.
Thus far investigation has revealed that 24 fake firms falling under the CGST Gurugram jurisdiction were created using the same modus operandi.
These firms collectively generated fraudulent invoices amounting to Rs 734.95 crore, leading to fraudulent availment of ITC amounting to Rs 143.05 crore and passing on of ITC amounting to Rs 174.72 crore.
Investigation has further identified that the accused had applied for registration of 1,400 fake firms. Further investigation into the matter is underway.
Arrest and Investigation Details
Coordinated search proceedings were conducted at multiple premises in Burari, Swaroop Nagar and Mukundpur areas of North Delhi, and one key individual was arrested on Monday under the provisions of the CGST Act, 2017.
The JMFC Court, Gurugram, viewing the seriousness of the offence, sent the accused person to judicial custody for three days, he added.
Tracking of IP addresses used to take GST registration led to the identification of various premises, wherein, during search, incriminating evidence was seized, including mobile phones, laptops, documents and SIM cards.
Additionally, cash of Rs 45.30 lakh was also recovered from the residence of the accused.
Job Portal Misuse
During the investigation, it was further revealed that the accused individual misused a job portal, namely "Job Hai", for sourcing KYC documents of unemployed persons by placing advertisements offering "Security Guard Jobs".
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