DGGI HQ books case against 3 firms for issuing fake invoices worth Rs 4,198 cr., 1 held

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New Delhi : Directorate General of GST Intelligence (DGGI) Headquarters booked a case on March 3, 2020, against M/s Fortune Graphics Limited, M/s Reema Polychem Private Limited, & M/s Ganpati Enterprises.

The aforesaid companies/ firms are involved in issuance of invoices without any actual supply of goods. This case was detected and developed by officers on further data analytics out of a case booked against one of the exporters, namely, M/s Anannya Exim, which was covered in an all India operation launched by DGGI-DRI on September 11, 2019, against various exporters for fraudulently claiming IGST refund on the strength of ineligible ITC.

During investigation, it was revealed that M/s Fortune Graphics Limited, M/s Reema Polychem Private Limited, & M/s Ganpati Enterprises, have issued invoices worth more than Rs 4,198 crore wherein Tax amount of more than Rs 660 crore has been fraudulently passed on as ITC credit to buyers of such fake invoices. It is also understood that, in the past, Directorate of Revenue Intelligence have booked a case of diversion of duty-free goods imported under Advance authorisation scheme by M/s Reema Polychem Pvt Ltd.

One of the directors of M/s Reema Polychem Private Limited was arrested on March 4, 2020, under Section 69(1) of CGST Act, 2017, for offences under the provisions of Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, according to a PIB release. Role of other directors of these three firms is under investigation. Further investigations are in progress.