New Delhi: In its concerted drive for the last two months across the country against GST fake invoice frauds by fake entities and fly-by-night operators who fraudulently avail, pass on and utilize input tax credit (ITC) in multi-layered scams, the Directorate General of GST Intelligence (DGGI) and the CGST Commissionerates have so far arrested 215 persons including six Chartered Accountants, one Company Secretary and two women.
GST intelligence authorities have also booked about 2200 cases and have unearthed more than 6600 fake GSTIN entities. The authorities have also recovered more than Rs 700 crore from these fraudsters.
Sources said that those arrested not only include the fake entities operators but also the end beneficiaries who connive with these fraudsters running businesses of fake invoices on commission basis. Out of the 215 arrests so far there are 71 masterminds, 81 proprietors, 36 director/managing directors, 15 partners, 3 CEOs, 6 chartered accountants and one each of company secretary, broker, and GST practitioner.
Use of data analytics, data-sharing and AI along with BAFTA tool has enabled the GST ecosystem and intelligence authorities to identify layer-by-layer activities of these fake entities and pinpoint the fraudsters with precise input.
Sources added that those arrested include managing directors, directors, proprietors and partners of various business and trade entities who are either involved in availing and/or utilizing the ineligible ITC fraudulently.
To further tackle the menace of fake invoice frauds and mis-utilization of ITC, the government has acted on the recommendations of the Law Committee of GST Council and has placed qualified restrictions of 1% on the use of ITC for tax liability in a manner that does not impact ease of doing business for genuine taxpayers.
Informed DGGI sources said that in the last two days 17 arrests have been made in fake invoice frauds and further investigations are on.