Based on intelligence received, the Gurugram unit of DGGI found that a merchant, who is an importer and wholesale trader of dry fruits has availed integrated GST input tax credit on imports, but has issued duty paid invoices to various non-existent firms, whereas the goods (dry fruits) were sold in the open market to various retailers.

Quite a few of the firms, to whom invoices were issued were found to be non-existent but were issued invoices without supply of goods to fraudulently pass on input tax credit. The authorities have recovered ₹5 crore from the merchant and additional recovery in this matter is expected.

In all, 10 such fake firms busted so far in the investigation, have fraudulently availed and passed on tax credit in excess of Rs160 crore, the statement said. One person arrested in the case has been brought before a local court on 13 May and has been placed in judicial custody for 14 days, the statement said.