By Bizodisha Bureau, Bhubaneswar, July 9, 2022: With the arrest of half a dozen accused of misappropriating and transferring bogus Input Tax Credit (ITC) to the tune of Rs 311.03 crore on the basis of bogus bills (invoices) of Rs 1717.91 crore, the fake racket operating at Rourkela in Sundergarh district has been finally busted.

The Enforcement Wing of the Commissionerate of CT&GST, Odisha recently arrested the masterminds of the fake racket. The accused masterminds have been identified as Dhanwan Shaw, Ram Bharose Shaw, Manoj Kumar Pandey, Subash Kandulna and his associate Niku Singh alias Chhatar Singh.

Earlier, the State Goods and Services Tax (GST) Enforcement Wing of Odisha had unearthed a network of 24 fictitious firms generating fake invoices without the supply of goods and passing fake Input Tax Credit (ITC NSE 0.38 %) to multiple beneficiaries.

“The masterminds in addition to their own companies have created and operated 23 other fictitious/non-existent business entities in the district of Sundargarh for making bogus transactions in their name and to avail and pass on bogus ITC without physical receipt and supply of goods and have defrauded the State exchequer,” Commissionerate of CT&GST, Odisha, said in a statement.

As per the Commissionerate of CT&GST, Odisha, 12 teams consisting of 48 officers of the State GST Enforcement Wing (assisted by 35 Police officials) have nabbed 5 masterminds from Rourkela for their involvement in availing and passing of bogus ITC worth Rs 311.03 crore.

As per the department, in 2019-20 simultaneous raids and inspections were conducted to the place of business of 49 suspected non-existent business entities and it was found that 47 out of 49 business establishments were non-existent and fictitious. But, as proceedings have already been initiated by CGST Authority in 23 cases, the investigation in the remaining 26 cases are being done by the state enforcement wings.