The anti-evasion wing of Goods and Services Tax (GST) has detected more than Rs 10,000 crore of bogus invoices across India, sources privy to the developments told CNBC-TV18.
The fraudulent companies were engaged in trading of fake tax invoices for availing input tax credit. According to people familiar with the matter, maximum cases were reported from New Delhi and Chennai.
This week, the Directorate General of GST Intelligence (DGGI) had busted a racket of fraudulent companies engaged in raising fake tax invoices worth Rs 220 crore to avail input-tax credit.
According to the DGGI, searches were conducted at several official as well as residential premises last Thursday in Chennai and Coimbatore in Tamil Nadu and busted the racket and arrested two persons.
"Several incriminating documents, including copies of fake invoices, issued on the letterheads of several firms that existed merely on paper, were seized", an official release issued on Sunday by Additional Director General K Balaji Majumdar said.