Fake invoice and ITC scam to touch Rs 1000 crore, biggest bust in the history of the SGST

VAIBHAV PARWAT

Scam was of Rs 18 crore in primary stage, Action by Aurangabad division of SGST

Aurangabad: The number of people taking advantage of input tax credit by setting up bogus companies is increasing. In the investigation conducted by the Aurangabad office of State Goods and Services Tax (SGST), fake bills of Rs 500 crores were revealed through 35 fake companies. However, according to officials the scope of this scam is estimated to be around Rs 1000 crores.

The investigation wing of the SGST Aurangabad division had busted a racket of operators who used fake documents to obtain bogus GST registration of firms. The fake invoices issued in these firms identified so far is more than Rs 500 crore. According to officials, a GST credit fraud of more than Rs 18 crore was under investigation by the SGST. In a series of search operations launched at Aurangabad and Mumbai, the investigation wing of Aurangabad division succeeded in cracking down a racket of operators Faisal Abdul Ghaffar Mewawala and Mohammad Aziz Mohammad Fakir in Mumbai, generating fake GST registrations and bank accounts on the basis of forged documents all over India by using the forged document related to premises and used for issuing fake invoices.

Biggest bust of SGST

This is the first time that the SGST department has brought out the scam on such a large scale. Further investigation is being done through the two arrested accused. It is also being predicted that the scope of this mega scam is in various states including Gujarat. By setting up fake companies, bills of more than Rs 500 crore have been issued. This scope is big and this scam is likely to increase to Rs 1000 crore, said G Shrikant, Joint commissioner of SGST, Aurangabad division.

Sleepless night for officials

The investigation wing of GST laid a trap to nab the two suspects. Not only this, none of the 20 officers slept for two days. More than ten PAN cards, Aadhaar cards, thirty ATMs, credit cards SIM cards and mobiles were seized. Further investigation is being done on the basis of the seized material. It is revealed that nearly Rs 90 crores of input tax has been.