DGGI Arrests Jamshedpur Scrap Trader in Alleged ₹100 Crore Fake GST Invoice Racket

The Jamshedpur regional unit of the Directorate General of GST Intelligence (DGGI) has arrested a scrap trader in connection with an alleged fake invoicing operation involving transactions estimated at nearly ₹100 crore.

The arrested individual has been identified as 45-year-old Ajay Sharma, a resident of Baridih in Jamshedpur. Following his arrest, Sharma was produced before the competent court and remanded to judicial custody on Wednesday.

According to preliminary findings, Sharma allegedly generated GST invoices for scrap transactions without undertaking any corresponding movement or supply of goods. Investigators suspect that these documentation-only transactions were used to facilitate fraudulent Input Tax Credit claims.

The DGGI investigation, reportedly being conducted under the supervision of Joint Director Abhinav Kumar, indicates that the suspected operation may have been active since 2023. Authorities have alleged that two non-genuine firms were registered and subsequently used to issue invoices and transfer inadmissible ITC to multiple beneficiaries.

Investigators are also examining Sharma’s suspected association with an interstate network of scrap traders. The inquiry reportedly includes possible connections with Vicky Bhalotia, Shiv Deora and Amit Gupta, who are currently lodged in Hotwar Central Jail, Ranchi, in relation to separate GST fraud and fake invoicing matters.

The DGGI is tracing the financial transactions, recipients of the alleged fraudulent tax credit and possible involvement of businesses operating in other states. The matter remains under investigation, and additional arrests or disclosures may follow based on the evidence collected. CA Sansaar