DGGI Hyderabad Busts Fake Invoice Racket in Battery Scrap Sector
The Directorate General of GST Intelligence (DGGI), Hyderabad, has uncovered a significant fake invoice racket operating within the battery scrap sector. The network involved multiple bogus GST entities that allegedly generated fake invoices and e-way bills for metal scrap supplies to fraudulently avail and pass on input tax credit (ITC) amounting to approximately ₹72 crore.
Based on intelligence developed by DGGI Hyderabad, investigators determined that the GST entities involved in the network were non-existent. The racket reportedly operated through fake firms created solely to issue invoices and e-way bills without any actual supply of goods.
Accused Remanded to Judicial Custody
Investigations revealed that one of the masterminds, Khasim Ali, allegedly operated the racket from his office in collusion with brokers. He generated fake invoices and e-way bills for the bogus firms and filed GST returns to pass on irregular ITC.
After gathering evidence, including data from electronic devices, DGGI officials arrested Khasim for offences under Section 132(1)(b) of the GST Act. He was produced before the Economic Offences Court, which remanded him to judicial custody for two weeks.
The quantum of irregular ITC involved in the network of fake entities is estimated at around ₹72 crore. Further investigations into the recipient firms in the ITC chain are underway. Officials are also examining the role of a major Hyderabad-based company that was among the key recipients.
