DGGSTI said a resident of Sirsa in Haryana, who was running the racket, has been arrested and produced before a local court. The agency has found that the accused had set up 90 fake firms to issue bogus invoices, without actually supplying goods. Issuing bogus invoices has been a practice among tax evaders and money launderers for a long time. These are used by other firms to either wrongly claim input tax credit, or to inflate costs to evade income tax. Fake invoices of over ₹7,600 crore with a GST component of ₹600 crore have been detected in the current case.The indirect tax administration is now using technology and data analysis to identify tax evaders and is closely working with the income tax department for leads.

Source: Mint July 19, 2019 15:33 UTC