Massive GST Scam Uncovered: Fake Firms Issue Rs 760 Crore in Bogus Invoices

A businessman, Ashok Harilal Oza, was arrested for operating 70 fake firms involved in a major GST fraud, issuing bogus invoices worth Rs 320 crore. In tandem, investigations found another individual, Hitesh Vasa, linked to 22 fraudulent firms. The CGST's drive uncovered fake invoices totaling Rs 760 crore.

A significant Goods and Services Tax fraud case has come to light, involving the arrest of a businessman accused of managing 70 fake firms which issued bogus invoices totaling Rs 320 crore. Officials confirmed the arrest of Ashok Harilal Oza, who has been put in judicial custody for 13 days.

The scam allowed Oza to generate Rs 320 crore in fake invoices without any actual trade of goods or services, falsely availing and passing on Input Tax Credits (ITC) worth millions. This arrest is part of the CGST's ongoing 'Second Special All India Drive Against Fake Registrations', aimed at tackling widespread fraudulent activities.

In a parallel case, Hitesh Vasa was identified as operating 22 sham firms, contributing to a total of 92 bogus companies engaged in similar activities. The elaborate scheme unearthed fake invoices valued at Rs 760 crore, with fraudulent ITC claims amounting to Rs 140 crore throughout the drive, according to CGST officials.

(With inputs from agencies.)