A fake racket has uncovered by the Directorate General of Goods and Services Tax Intelligence (DGGSTI). which includes dummy firms some are registered at the address of the government premises in Nagpur.
The fictitious transactions to be tuned by input tax credit (ITC) 
A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India for Rs 78 crore which is been availed by these firms whose worth is over 430 crore. Every 23 firms involved in the racket took the amount of fake ITC within 5 crores. This is done for avoiding the arrest if the amount is more than Rs 5 crore than DGGSTI can take strict actions.
Firms got the GST registration by showing the address of the government administration and submit false documents. This went unrecognised until the probe was administered received by sleuths on the source of special intelligence. This action was conducted by DGGSTI’s Nagpur section.
The firms record fake sales and purchase transactions revealed in an investigation from Delhi to Chennai and availed ITC without the actual supply of goods 
Get to know GST provisions and rules on the free supply of goods. Also, we have included rules regarding ITC reversal on free supplies of goods and services. The recorded transaction was of commodities ranging from iron and steel, plastic, copper, waste from aluminium etc.
The style of working of the firms is for obtaining the GST registration on the basis of fake documents whose has not relation with individuals and carries bogus transactions. The transactions were without any physical movement of goods i.e only papered transaction was there. All transactions were transferred through the complex network of firms so to make it untraceable.
There is a threshold limit which is Rs 5 crore, a new GST was obtained and the earlier was cancelled. The exercises were continued as the new firms with the new PAN number was formed states in a press release. The GST registration numbers
Get to know the complete GST registration procedure online on the Indian government GST portal official website. We have explained by the actual screenshot of every step of vehicles mentioned in the e-way bills were two or three-wheelers.
Out of 23 firms, 6 were registered in Nagpur according to sleuths. Searches were conducted at Delhi Nagpur, Jalandhar, and Sonepat.
Likewise GST the ITC has a reduction in the tax liability in the indirect system of tax. On the sale of goods this the reduction in the tax liability towards the charge that was given during the purchase of inputs or the products. The surplus tax is utilized without paying the tax for setting the tax liability.
