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GST Intelligence Busts Two Fake ITC Rackets, Arrests Key Operators

Investigators allege shell companies issued fake invoices to claim over ₹45 crore in credits, with the probe now extending to recipient firms.

Preliminary analysis indicates a widespread network of bogus firms with the quantum of fraudulent Input Tax Credit currently estimated at approximately ₹30.21 crore.
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Overview

  • The Chandigarh zonal unit of the Directorate General of GST Intelligence uncovered a ₹30.21 crore fake Input Tax Credit racket and arrested alleged mastermind Manmohan Singh, now remanded in judicial custody.
  • Manmohan Singh is accused of floating shell firms across Delhi and Ludhiana that issued bogus invoices for zinc products to generate ineligible tax credits.
  • In Surat, GST agents arrested textile trader Yatin Dudhat for filing fake invoices totalling ₹100 crore to claim ₹15.19 crore in Input Tax Credit.
  • DGGI officials warned of potential evidence tampering and said further arrests and recoveries are expected as investigations deepen.
  • The agency is emphasising inter-agency collaboration and public outreach alongside advanced surveillance and intelligence gathering to protect GST revenues.