Gurugram, March 3 The Central Goods and Services Tax (CGST), Gurugram, conducted coordinated searches at multiple locations in North Delhi as part of an investigation into a large-scale fake GST registration racket, an official said on Tuesday.
According to an official statement, the fake GST registration racket was being operated by using forged documents to obtain registrations.
These documents were then misused to obtain GST registrations for fake companies, without the knowledge of the unsuspecting individuals.
So far, the investigation has revealed that 24 fake companies operating under the CGST Gurugram jurisdiction were created using the same modus operandi.
These companies collectively generated fraudulent invoices amounting to ₹734.95 crore, leading to fraudulent claims of Input Tax Credit (ITC) amounting to ₹143.05 crore and passing on of ITC amounting to ₹174.72 crore.
The investigation has further identified that the accused had applied for registration of 1,400 fake companies. Further investigation into the matter is underway.
Coordinated search proceedings were conducted at multiple locations in Burari, Swaroop Nagar and Mukundpur areas of North Delhi, and one key individual was arrested on Monday under the provisions of the CGST Act, 2017.
The JMFC Court, Gurugram, viewing the seriousness of the offence, sent the accused person to judicial custody for three days, he added.
Tracking of IP addresses used to obtain GST registration led to the identification of various locations, wherein, during the search, incriminating evidence, including mobile phones, laptops, documents and SIM cards, was seized.
Additionally, cash amounting to ₹45.30 lakh was also recovered from the residence of the accused.
During the investigation, it was further revealed that the accused individual misused a job portal, namely "Job Hai", by placing advertisements offering "Security Guard Jobs" to source KYC documents of unemployed persons.
