Raipur Man Held for Rs. 80 Crore GST Evasion Through Fake Bills

The Directorate General of GST Intelligence (DGGI) in Raipur has arrested a businessman named Santosh Wadhwani. He is accused of creating fake bills worth Rs. 80 crore, showing that he bought and sold goods that never actually existed. Using these fake bills, he claimed input tax credit (ITC). Because of this, the government lost about Rs. 14 crore.

Officials of the Directorate General of GST Intelligence (DGGI) arrested Santosh Wadhwani in Raipur on the night of January 29 at around 9 pm after completing a detailed investigation. According to preliminary findings, he was involved in issuing fake invoices without supplying any actual goods or services. Using these invoices, he wrongly claimed Input Tax Credit (ITC), which is a violation of GST laws.

The investigation found that Wadhwani was operating a firm named M/s Vijay Laxmi Trade Company in the name of his son. Officials said the company existed only on paper and had no real business operations. It was mainly used to generate fake bills and move illegal transactions. Additionally, the officials did not find any genuine business activity matching the invoices issued by the firm.

DGGI officers detected the case through a combination of specific intelligence inputs and advanced data analysis. They examined bank records, GST returns, e-way bills, and other financial documents. This analysis revealed a pattern of circular transactions and fraudulent ITC claims, showing that the operation was well-organised.

Based on these findings, action was taken under Section 69 of the Central GST Act, 2017, which allows authorities to arrest people involved in serious tax offences. The offence is punishable under Section 132 of the Act, which includes provisions for imprisonment and financial penalties in cases of major tax evasion.

After his arrest, Santosh Wadhwani was presented before the Raipur district court on Friday. The court sent him to judicial custody, and he was lodged in Raipur Central Jail. Officials stated that investigations are still continuing to trace other firms or individuals who may have been involved or benefited from the fake invoicing network.

The DGGI Raipur Zonal Unit said it will continue to take strict actions against GST evasion and illegal financial practices. The department has also advised traders and business owners to follow GST rules carefully and maintain proper records. It also warned that strict legal action will be taken against anyone found involved in fake billing or tax fraud.

Tax experts explained that under the GST law, cases involving tax evasion of more than Rs. 5 crore are treated as serious offences. Such cases can lead to imprisonment of up to five years, along with heavy penalties.