The Preventive wing of CGST, Gandhinagar Commissionerate arrested one Ehsasali Tasvarali Saiyed (29), in Ahmedabad, on Friday for issuing bogus taxable invoices worth Rs 1,210 crore. “The accused has been remanded to judicial custody by the Magistrate court of Ahmedabad,” confirmed a CGST Gandhinagar Commissionerate official.
The accused, a resident of Vadodara and suspected to be the mastermind, was operating 66 firms, registered under proxy proprietors. Furthermore, he had enabled firms to which he passed on the invoices, to claim fraudulent input tax credit of Rs 177.64 crore.
A CGST, Gandhinagar Commissionerate official said, “The invoices filed were flagged off as suspicious by our department in December whereupon we found the addresses provided to be residential addresses of several other people.”
The accused had also taken possession of the proxy proprietors’ SIM cards. “A one-time password is sent to the registered phone number for GSTIN login,” the official added. Using the documents of various proprietors to establish the existence of multiple firms on paper, fake invoices were then issued to other firms.
The accused would pay Rs 5,000 to Rs 10,000 to the proprietors per month for using their documents and running the firms in their names, while also receiving one per cent of invoice value as commission from the other firms to whom he issued the fake invoices.