The Directorate General of GST Intelligence has uncovered a bogus billing racket worth Rs545 crore in Rajkot, arresting Jatin Sakaria and Vaibhav Boricha for allegedly availing fraudulent input tax credit (ITC) of over Rs102 crore.
The accused reportedly operated 23 fictitious firms to generate fake invoices without actual supply of goods. Searches conducted at multiple premises linked to the duo recovered incriminating documents, mobile phones, and other electronic devices for forensic examination.
Preliminary investigations revealed that bogus invoices totaling approximately Rs545 crore were created, enabling Rs102.25 crore of illegal ITC to be claimed by beneficiary firms. The fake entities were allegedly registered in the names of unidentified persons and coordinated with companies receiving fraudulent invoices for GST registration and returns filing.
Officials stated that Sakaria primarily managed the network of shell firms and issued fake tax invoices, while Boricha handled financial transactions, routing funds through multiple channels. After deducting commissions, remaining amounts were reportedly returned in cash. Investigators noted that angadiya firms were used to move funds during the operation.
The two accused allegedly collaborated to generate bills without supplying goods, passing on ineligible ITC to beneficiary entities, and orchestrating a large-scale GST fraud network. Further investigations are ongoing to identify additional accomplices.
