A major Goods and Services Tax (GST) fraud case has emerged, leading to the arrest of businessman Ashok Harilal Oza, who is accused of managing 70 fake firms involved in issuing bogus invoices worth a staggering Rs320 crore. The fraudulent scheme allowed Oza to claim and pass on Input Tax Credits (ITC) without any actual trade or delivery of goods or services.
The arrest is part of the CGST’s Second Special All India Drive Against Fake Registrations, an initiative aimed at tackling widespread GST fraud across the country. Officials confirmed that Oza has been remanded to judicial custody for 13 days as investigations continue.
Oza’s complex scheme involved the creation of 70 non-genuine firms that issued fake invoices, allowing him to fraudulently avail and pass on ITC without any legitimate transactions. This practice, which has been a persistent issue for tax authorities, resulted in a significant financial loss to the government.
In a related investigation, Hitesh Vasa was found to be operating 22 sham firms, contributing to a broader network of 92 bogus companies. This elaborate operation generated Rs760 crore worth of fraudulent invoices, with ITC claims totaling Rs140 crore, further complicating the already extensive network of fake GST registrations.
Both cases highlight the scale and sophistication of financial crimes related to GST evasion and money laundering, which have been a primary focus of the CGST in their efforts to combat tax fraud. The drive against fake registrations has uncovered numerous fraudulent operations attempting to evade tax obligations by manipulating the GST system.
