DGGI busts fake invoice racket, Hyd man held in ₹72cr ITC fraud

Hyderabad: The Directorate General of GST Intelligence (DGGI), Hyderabad, has busted a fake invoice racket in the battery scrap sector involving multiple bogus GST entities that allegedly generated fake invoices and e-way bills for metal scrap supplies to fraudulently avail and pass on input tax credit (ITC) worth around ₹72 crore.Based on intelligence developed by DGGI Hyderabad, investigators found that the GST entities involved in the network were non-existent. The racket allegedly operated through fake firms created to issue invoices and e-way bills without any actual supply of goods.Accused Remanded to Judicial CustodyInvestigations revealed that one of the masterminds, Khasim Ali, allegedly operated the racket from his office in collusion with brokers, generating fake invoices and e-way bills for the bogus firms and filing GST returns to pass on irregular ITC.After gathering evidence, including data from electronic devices, DGGI officials arrested Khasim for offences under Section 132(1)(b) of the GST Act. He was produced before the Economic Offences Court, which remanded him to judicial custody for two weeks.The quantum of irregular ITC involved in the network of fake entities is estimated at around ₹72 crore. Further investigations into the recipient firms in the ITC chain are underway. Officials are also examining the role of a major Hyderabad-based company that was among the key recipients.