GST fraud: Accused used Aadhaar and PAN of employees for fraudulent activity

Officers of the Directorate General of GST Intelligence, Belagavi Zonal Unit, have unearthed a GST fraud of ₹16 crore. One person was arrested during a search and inspection carried out at three places in Ballari district of Karnataka.

The investigation revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit (ITC) transactions. Invoices to avail and pass on fraudulent Input Tax Credit (ITC) amounting to ₹16 crore were uncovered.

The accused had set up shell entities with no legitimate business operations, generating fake invoices and e-way bills. The data analysis of the transactions has given substantial grounds regarding the fraudulent nature of the activity carried out by the accused.

The arrested individual floated shell companies, with no actual business activity, for availing and passing on the benefit of ITC. During the search proceeding at the Principal Place of Business, incriminating documents were found and seized.

The accused used forged rental agreement, letterhead and other documents, to create the shell companies. He used the personal documents, like Aadhaar and PAN, of his employees to carry out the fraudulent activity.

The accused was produced in court, which sent him to judicial custody.