Guwahati: The Central Goods and Services Tax (CGST) Commissionerate in Guwahati has arrested two people for their alleged role in a fake invoicing network that used dozens of fraudulent GST registrations to pass on bogus tax credits, officials said on Friday.
According to a statement, the anti-evasion wing of the Commissionerate received specific intelligence indicating that a group had floated more than 50 suspicious GST-registered entities to issue invoices without any actual supply of goods or services.
The aim, officials said, was to facilitate large-scale fraudulent input tax credit (ITC) claims.
Acting on the inputs, investigators tracked down the locations of two key suspects and conducted searches on Thursday.
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During questioning, both individuals allegedly admitted to obtaining GST registrations for non-existent firms and generating fake invoices in exchange for monetary gains.
The duo was arrested on Friday and produced in court, which remanded them to judicial custody.
Preliminary scrutiny of two of the implicated firms has already revealed GST evasion amounting to Rs. 8.59 crore.
Officials said the ongoing probe is expected to uncover tax losses running into several more crores.
