DGGI books 3 firms for tax evasion of over Rs 600 crores

The Directorate General of GST Intelligence (DGGI) on Monday booked three firms for tax evasion of more than Rs 600 crores, said the Ministry of Finance.

A case was booked against Fortune Graphics Limited, Reema Polychem Private Limited and Ganpati Enterprises, who were found involved in the issuance of invoices without any actual supply of goods.

The case was detected and developed by the officers on further data analytics out of a case booked against one of the exporters, Anannya Exim, covered in the all India joint operation launched by DGGI-DRI in September 2019, against various exporters for fraudulently claiming IGST refund on the strength of ineligible ITC, the Ministry said in a press release.

During the investigation conducted by the DGGI Headquarters, it has emerged that the aforesaid three firms have issued invoices worth more than Rs 4,100 crores wherein tax amount of more than Rs 600 crores has been fraudulently passed on as ITC credit to different entities, it added.

"In this regard, three persons have been arrested for committing offences under the GST Act. Two of them, who were on the run and were continuously avoiding presence in DGGI Headquarters, are directors/proprietors of Fortune Graphics Limited, Reema Polychem Private Limited and Ganpati Enterprises. The third person is the director of AB Players Exports Private Limited and controller of various other export firms/ compes who have claimed IGST refunds on the strength of fake invoices issued by these firms," the Ministry said.

All the three persons have been arrested by DGGI for committing offences under the provisions of Sections 132(1)(b) and 132(1)(c) of the Central Goods and Services Tax Act, 2017 and remanded for judicial custody by the Magistrate.

Further investigation in the matter is underway.

( With inputs from ANI )