Bhopal (Madhya Pradesh): Economic Offences Wing (EOW) has registered a case against a Delhi-based businessman who hacked another trader's GST account and uploaded fake invoices of more than Rs 8 crore, said officials here on Tuesday.
A complaint was lodged with EOW by a businessman in March alleging that his GST account password was changed and a new email and a mobile number were added.
During the course of the investigation, it was found that accused Basant Kumar Gour, a Delhi-based businessman, had added his mobile number and committed the fraud.
He was also using another number from Bihar belonging to another person. He had uploaded 989 invoices on the GST account worth Rs 8 crore and generated input tax credit of Rs 1.46 crore.
These invoices were uploaded through seven firms situated in Bhopal and Rajgarh. One of the victims from Pachor in Rajgarh district, in his statement, said that his GST number had also been misused. The original businessman did not have any business with the firms.
The EOW came to know that the suspect was involved in taking benefits of 'Fake Input Tax Credit'. The EOW has registered an FIR against the suspect and other unidentified suspects in the case and has started investigations.
How fake input tax credit fraud works
Fake Input Tax Credit (ITC) under GST happens when a business claims a tax credit on paper without any actual movement of goods or services.
It is a major financial crime in India's tax system, often run through shell companies and fake invoice networks.
