Jamshedpur scrap trader arrested in alleged Rs 100 crore fake GST billing racket
DGGI says accused was part of an interstate network that used shell firms to facilitate fraudulent input tax credit claims
The directorate general of GST Intelligence (DGGI) has arrested a scrap trader from Jamshedpur in connection with an alleged fake GST invoicing racket involving transactions worth nearly Rs 100 crore.
The accused, identified as Ajay Sharma, was taken into custody following searches at his premises in the Baridih area conducted under the supervision of DGGI joint director Abhinav Kumar.
During the raids, investigators seized mobile phones, laptops and digital records that are expected to form a key part of the ongoing probe. Sharma was arrested on Wednesday evening after questioning and has since been remanded to judicial custody.
According to the DGGI, Sharma was allegedly part of an interstate network that generated fake invoices through shell companies to fraudulently claim and pass on Input Tax Credit (ITC).
Investigators allege that fictitious entities, including Ganesh Trading and Kanti Trading, were used to create paper transactions that enabled fraudulent tax credit claims.
Preliminary findings indicate that the fake billing network handled transactions worth around Rs 100 crore, although officials are still assessing the exact loss to the government exchequer.
The agency is also working to identify companies and individuals who may have benefited from the alleged fraudulent ITC claims.
Officials are examining whether Sharma had links with other businessmen already in judicial custody in separate GST fraud cases. However, no further details about these suspected connections have been disclosed.
The DGGI has been investigating the alleged fake invoicing network across Jharkhand and several other states for the past few months.
Digital evidence and financial documents seized during the searches are undergoing forensic analysis, with investigators expecting the examination to uncover the involvement of additional individuals and entities.
Officials said the investigation remains ongoing, with efforts focused on tracing financial transactions, identifying shell companies and establishing the full extent of the alleged tax fraud.
With IANS inputs