CGST Uncovers Massive Fake GST Fraud Using Job Portal Information:

CGST Uncovers Massive Fake GST Fraud Using Job Portal Information The Central Goods and Services Tax (CGST) has recently discovered a huge GST fraud case where fake GST registrations were obtained using the personal information from job seekers. An accused has been arrested under the provisions of the Central Goods and Services Tax (CGST) Act, 2017. However, his identity has not been revealed, as the investigation is still continuing.

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Under this fraud, a popular job portal called Job Hai was used to advertise vacancies for security guard posts. Once the applicants responded, the fraudsters obtained their identity documents for the employment verification. Using these collected documents, the fraudsters allegedly obtained GST registrations and established shell firms without the applicant's knowledge. These fake firms were used to create bogus invoices of Rs 734.95 crore without the actual movement of goods or services. Doing this, the accused fraudulently claimed input tax credit (ITC) worth around Rs 143.05 crore and passed on ITC worth Rs 174.72 crore to other companies. The authorities came to know about the fraud after searches were conducted at many premises in Burari, Swaroop Nagar and Mukundpur in North Delhi, based on the intelligence inputs about the suspicious GST registrations. The investigators tracked the IP addresses used to file the fraudulent registrations. By doing this, the investigators came to know about the locations from which the accused were operating. The investigations revealed that the fraudsters have applied for GST registrations of around 1,400 shell firms. However, as of now, the investigators have only identified 24 fake firms under the CGST Gurgaon jurisdiction.

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The arrested accused was presented before the Judicial Magistrate First Class court in Gurgaon, which remanded him to three days of judicial custody after observing the seriousness of the offense. During the investigation, the officials seized the phones, laptops, documents and SIM cards and recovered Rs 45 lakh from the accused's residence.