Massive GST Fraud Exposed: Rs 3,200 Crore Scam in Bengaluru

In a sweeping investigation, the Directorate General of GST Intelligence in Bengaluru unearthed a Rs 3,200 crore fraud, arresting two individuals with a third suspect at large. Bogus firms were created for circular trading and fake tax credits, impacting public investors through inflated share prices.

The Directorate General of GST Intelligence (DGGI) in Bengaluru has uncovered a staggering GST fraud estimated at Rs 3,200 crore. The investigation led to the arrests of two individuals, while a third remains on the run, according to Sucheta Sreejesh, Additional Director General of the DGGI Bengaluru zone.

In a major operation across over 30 locations in Bengaluru and Mumbai, officials discovered a web of deceit. Bogus companies without real business activities were set up for circular trading, falsely inflating turnovers, securing fake Input Tax Credit, and affecting Rs 665 crore. These firms were even listed on stock exchanges.

The probe identified 15 such companies, revealing further discrepancies such as fake invoices passing off as services. Most GST returns used common IP addresses, suggesting a centralized operation. The DGGI is deepening its investigation given the scam's expansive impact on investors.

(With inputs from agencies.)