Fake GST billing ring unearthed in Bengaluru

The Enforcement Wing of the Commercial Taxes Department busted a gang which was issuing bogus GST invoices facilitating various purchasers to claim input tax credit illegally. The gang was allegedly involved in issuing fake GST invoices worth Rs.203 crore.

Three businessmen, Vikram Jeet Duggal, proprietor of Rajiv Enterprises, and his associates, Ashfaq Ahmed and Nayaz Ahmed, were arrested following a raid on their premises in Bengaluru. This is the second case where arrests have been made related to fake GST invoices. A statement from Commercial Taxes Department said: “In the last one month, the officers have identified gangs of bogus dealers who are involved in bill trading and raising of fake invoices, and till date over 50 business premises in Bengaluru have been raided and the probe is on.”
Vikram and associates had allegedly obtained 14 GST registrations in the name of their relatives and others and had issued fake GST invoices without supply of goods and services.

Their modus operandi allegedly involved creating an office at one of their residences where they would generate invoices and e-way bills.

Based on specific intelligence and data-based analysis, the premises were raided. “The team found documents pertaining to 14 firms in a small room. The Enforcement Wing has seized two laptops, a mobile phone, diaries and other documents for further investigation. The accused was found in possession of a username and password of all 14 firms,” said a statement from the department.