The Gurugram Zonal Unit of Directorate General of GST Intelligence has busted a major fraudulent Input tax Credit (ITC) racket involving 461 fake entities, which had passed on fraudulent ITC of Rs. 863 crore.
“Huge number of forged/ morphed/ fake soft copies of documents like rent agreements, electricity bills, aadhar card, driving license, PAN card, etc were detected in the laptops resumed from this secret office, which were used to create and operate their fake entities,” finance ministry said in a statement issued on Thursday.
Tax officials have arrested two key operatives in this case.
Initial investigations indicate that the fraudulent ITC credit has eventually been used by the metal and iron and steel sector, the finance ministry statement said.