GURGAON: The Gurgaon zonal unit of the directorate general of GST Intelligence has unearthed a major input tax credit (ITC) racket involving 461 shell/fake entities, which had passed on fraudulent ITC to the tune of Rs 863 crore.
The intelligence unit also arrested two key operatives on Thursday.
Senior officials said a racket involved in passing on of fraudulent ITC through fake shell entities was detected, when based on intelligence a search was carried out at a secret office being operated from Delhi for this purpose.
“Huge number of forged/morphed/fake soft copies of documents like rent agreements, electricity bills, Aadhaar card, driving licence, PAN card and others were detected in the laptops seized from this secret office, which were used to create and operate these fake entities,” said an official.
The forensic examination of the laptops and devices seized from this office led to the eventual detection of ITC fraud to the tune of Rs 863 crore involving fake 461 entities and arrest of two key operatives.
Initial investigations indicate that the fraudulent IT credit has eventually travelled to highly evasion prone metal/iron and steel sectors.
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