In a major crackdown on financial fraud, the Directorate General of GST Intelligence (DGGI), Ahmedabad Zone, has arrested four individuals allegedly involved in a staggering ₹800-crore fake billing racket. According to officials, the accused created a web of shell companies to generate fraudulent invoices without the actual supply of goods or services, enabling the wrongful availing and passing of Input Tax Credit (ITC).
Preliminary investigations revealed that the network operated across multiple states, using forged documents, fake GST registrations, and dummy firms to manipulate tax credits. The arrests were made after months of digital surveillance, data analysis, and coordinated searches at various premises linked to the suspects.
Authorities stated that the racket not only caused a significant loss to the exchequer but also distorted fair market competition. The DGGI is now tracing the beneficiaries who used the fake ITC to evade taxes and inflate turnovers. More arrests are likely as the investigation expands.
This latest action underscores the government’s intensified efforts to curb GST-related fraud and strengthen compliance. The DGGI has urged businesses to verify vendor credentials and maintain transparent transaction records to avoid legal consequences.
