Pune GST Intelligence Unveils Rs 145 Crore Multi-State Tax Credit Scam

A significant achievement occurred as the Pune zonal unit of the Directorate General of GST Intelligence (DGGI) unveiled a multi-state counterfeit input tax credit (ITC) scheme valued at more than Rs 145 crore. Official sources revealed that one individual from Rajasthan has been apprehended in connection with the operation. The investigation, which commenced with a scrutiny of several firms in Pune and Goa, expanded to unveil the network’s reach across Maharashtra, Rajasthan, Delhi, Karnataka, Tamil Nadu, and Telangana, with the potential involvement of other states not being discounted.

According to the sources, the scam implicated around 50 fake companies. These entities manipulated documents, using forged, altered, or modified copies, to falsely claim substantial amounts of Input Tax Credit (ITC) without any legitimate transactions of goods taking place.

The investigators from the GST team checked phone records, customer forms, and how tax returns were filed. They also looked into bank accounts to find a group operating from different cities in India. This group made fake companies using fake names and documents, and even found ways to get SIM cards without proper identification.

After searching in many cities, they got a tip that Rahul Kumar, the main person behind the fake companies, was in Jaipur. They found him by tracking deliveries and SIM card records. They raided his house, found evidence, and arrested him.

They discovered that Rahul Kumar made fake identities and used fake IDs to control everything related to tax payments and registrations.

Rahul Kumar went to court in Jaipur, then was brought to Pune where he was sent to jail for 14 days.

Now, they’re still investigating to find more fake companies, who else was involved, who benefited from the scam, and to get back the money that was stolen.