The GST intelligence wing has struck a heavy blow against the “paper-billing” industry in Haryana by dismantling a sophisticated financial racket operated by a local scrap trader.
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The Modus Operandi: The investigation revealed that the dealer had created over a dozen bogus firms using forged identity documents. These firms existed only on paper and were used to generate fake e-way bills and invoices for ferrous and non-ferrous scrap.
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The Scam: By issuing these bills to other businesses for a small commission (typically 1–2%), the dealer helped those companies fraudulently claim ITC to offset their actual GST liabilities. The scam, valued at approximately ₹50 crore, highlights the vulnerability of the unorganized scrap sector to tax fraud.
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The Raid: Acting on specific intelligence, DGGI teams from the Rohtak and Gurugram units swarmed the dealer’s residential and business premises. “We found pre-signed blank chequebooks, multiple SIM cards used for GST registrations, and stamps of various non-existent companies,” an official stated.
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Sector-Wide Impact: The scrap sector in Haryana—centered around Sonipat and Panipat—has been under intense scrutiny. High-value goods with difficult-to-track movement make it a hotspot for “bogus invoicing.” This raid follows a similar crackdown where officials blocked nearly ₹100 crore in inadmissible ITC across the state.
