The Directorate General of GST Intelligence (DGGI) has detected a tax fraud worth Rs 50 crore via intensive but non-intrusive data analytics, officials said. The racketeers floated about 115 fake companies spread across nine commissionerates and wrongfully availed of input tax credits (ITC), they added.
A student based in Ahmedabad has been arrested for registering these fake firms. Sources said at least 55 firms registered under Vadodara and Ahmedabad commissionerates raised suspicion for the manner in which ITC was claimed. “These firms might have been issuing fake invoices to the recipients without actual supply of any goods and services. The recipients in turn availed ITC on the basis of these fake invoices,” a source said.
Further, the internet protocol (IP) addresses from which these firms were registered, and those at the time of monthly GST return filing were same. The intelligence wing then obtained the mobile numbers used for receiving OTPs for authentication of GST related works. On verification of all the IP addresses, it was found that these pertained to some data service providers, which led to the actual physical locations of the premises used for registration of fake firms and filing of GST returns had been undertaken, sources said.
Sources said that these firms issued invoices primarily for supply of manpower, maintenance contracts and consultancy services. Out of 115 fake units, 49 units were under Ahmedabad North commissionerate. The numbers of fake units under Commissionarates were as follows: 27 (Vadodara-II), 15 (Bhiwandi), 12 (Gandhinagar), 5 (Ahmedabad South) 3 (Jodhpur), 2 (Vadodara-I), 1 (Thane Rural Bhavnagar).
The government believes that with the use of Aadhaar in GST registration, the indirect tax department could control such unscrupulous professionals better. Such elements are very often vocal on social media against various apt measures taken by the government on GST to curb bad/malign practices, sources said.
A top official said: “The government is considering putting such dubious firms under risk category like in case of export firms, which will block their refunds, besides other appropriate legal actions, if found involved in deceitful practices.”