ED Raids Multiple States in Rs 650 Crore 'Fake' GST ITC Case

• The Enforcement Directorate (ED) conducted multi-state searches in connection with an alleged fake GST input tax credit (ITC) case worth Rs 658 crore.
• The case originated in Arunachal Pradesh, with searches ongoing in Jharkhand, West Bengal, and Manipur under the Prevention of Money Laundering Act (PMLA).
• The ED Itanagar office is coordinating the operation, which stems from an FIR by Itanagar Police.
• Individuals Rakesh Sharma and Ashutosh Kumar Jha allegedly availed fraudulent ITC using fake invoices without actual goods or services.
• A non-existent company, Siddhi Vinayak Trade Merchants, and 58 shell entities are under ED scanner for bogus invoices and fraudulent ITC claims.

Why It Matters: ED launched multi-state raids investigating a Rs 658 crore fake GST ITC scam originating in Arunachal Pradesh.