How IP address, phone number lifted veil off Rs 250cr GST fraud in Gurgaon
Gurgaon, Feb 13, 2025
A massive GST fraud was uncovered by the city commissionerate of central goods and services tax (CGST), leading to the arrest of a 27-year-old "company secretary" who allegedly orchestrated a scheme involving fraudulent invoices worth Rs 243 crore and illegal claims of input tax credit (ITC) of Rs 37.5 crore.
The investigation was initiated when GST officials noticed suspicious patterns of multiple billings from the same IP address in the city and OTPs being sent to a single mobile number for different companies that had their addresses in various locations of Mumbai.
The authorities analysed data using GST Prime — which helps administrators examine tax collections within their jurisdiction — and other electronic bill systems. They discovered a complex network of 12 fictitious firms that were registered under different proprietors and directors, but from a single IP address.
Officials said the fraudulent scheme began during the pandemic, when various companies were registered but kept dormant. These entities were activated two years later as part of a larger racket originating from Maharashtra. The mastermind allegedly received operational support from the "company secretary" in Gurgaon, who was given a dedicated mobile phone where the OTPs to claim tax credit landed.
"We have initiated an investigation into the fraud based on fake electronic bills. Notices have been issued to the relevant company and firm operators. A letter was sent to the departmental officer in Maharashtra as well since the racket originated there," said Karan Singh, assistant commissioner of CGST in Gurgaon.
The "company secretary", whose identity was withheld, was arrested on Feb 6 under Section 69(1) of the CGST Act, 2017. Sources said he had admitted to orchestrating the fraud.
The accused was produced before additional chief judicial magistrate Amit Gautam, who remanded him in 14 days' judicial custody. A bail hearing is scheduled for Friday.
CGST officials expressed concern about the potential impact on their investigation if the accused was released on bail. They said if free, the "secretary" could tamper with the probe and shield others involved in the racket.
The department, officials said, has issued notices to several others believed to be associated with the accused and is expanding its investigation to examine 12 additional companies currently under GST radar.
The fraudulent billing operations, sources said, continued for two and a half years before they were detected.
[The Times of India]
