The Enforcement Wing, South Zone of Commercial Taxes Department of Karnataka busted a cartel involved in issuing fake GST invoices worth Rs 203 crore facilitating various purchasers to claim input tax credit illegally and arrested three people, on Tuesday.
The arrested Vikram Jeet Duggal, son of Balbir Kumar Duggal, proprietor of Rajiv Enterprises in connivance with Ashfaq Ahamed and Nayaz Ahmed, had obtained 14 GST registrations in the name of their relatives and other people and were issuing fake GST invoices without the supply of goods and services, said officials.
Explaining their modus operandi, the team said that the gang had set up an office on the second floor of one of their houses from where they generated invoices and e-way bills without movement of any goods. Based on specific intelligence, the enforcement team raided the office on Tuesday and found documents pertaining to 14 firms. The Enforcement Wing seized two laptops, one mobile phone, diaries and other documents. The suspects were found in possession of usernames and passwords of all the 14 firms.