In a major breakthrough in the ongoing investigation into a large-scale bogus GST invoice racket, the Anti-Evasion Wing of the CGST Commissionerate, Ludhiana, has arrested another key accused. This comes just days after the first arrest made on July 8 in the same case.
The latest accused is alleged to be the controller and operator of two fake firms and has been identified as a significant player in a network issuing fraudulent GST invoices and facilitating illegal refunds, resulting in substantial losses to the exchequer.
According to officials, the probe so far has unearthed a syndicate running multiple fictitious firms, which collectively issued fake GST invoices amounting to a taxable value of ₹1,786 crore. These invoices enabled the wrongful claim of Input Tax Credit (ITC) worth ₹180 crore — all without the actual supply of any goods or services. The fraudulent ITC was then used to secure GST refunds under the inverted duty structure.
One of the firms linked to this network had already claimed a GST refund of ₹8.74 crore using ITC sourced from non-existent suppliers. The person responsible for this refund was apprehended earlier this week.
With two arrests now made, officials say that the investigation is far from over. Efforts are underway to identify other individuals and entities involved in this sophisticated tax fraud network.
