SGST busts racket using fake documents for GST registration of firms

GST credit fraud of more than Rs 18 crore

Aurangabad:

The investigation wing of the State Goods and Services Tax (SGST) Aurangabad division on Wednesday 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 has been under investigation by the GST. 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 in Mumbai, generating fake GST registrations and bank accounts on the basis of forged documents all over India. It was also noticed that a fake GST registration of a non-existent business in the name of M/s Farhat Enterprises was obtained at Aurangabad, by using the forged document related to premises and used for issuing fake invoices. The registration was shown on the name of proprietor Javed Hasnani from Rajkot (Gujarat). The fake invoices of value around Rs 121 crore were issued to pass on the fraudulent GST credit of Rs 18 crore. It was also revealed that a network of fake entities was created and operated by a Mumbai based duo who obtained fake GST registrations by using forged documents. The officials seized forged documents including Pan Card, Aadhaar Card, Sim Cards and mobile handsets. The fake invoices issued in these firms identified so far, is more than Rs 500 crores. The investigation was conducted, under the supervision of joint commissioner of SGST Aurangabad Division G Sreekanth, deputy commissioner Dr Pravinkumar Rathi, assistant commissioners (investigation) Nitesh Bhandare, Prakash Gopnar and other officials.

Judicial custody of 14 days

The accused were presented before the Judicial Magistrate First Class, Aurangabad who remanded the accused in Judicial Custody for 14 days.