Cuttack, Jan 1 (IANS): The Odisha Goods and Services Tax (GST) Enforcement Wing has cracked a fake invoicing racket which created fake GST invoices worth Rs 510.28 crore, said an official on Friday.

The mastermind Sandeep Mohanty was arrested by the sleuths on Thursday night while the other accused involved are still absconding.

Three goods vehicles carrying the goods on the strength of fake invoices issued by the mastermind Sandeep Mohanty have also been seized at Jeypore in Koraput district.

Mohanty, the kingpin in the tax fraud, in collusion with others, has availed bogus Input Tax Credit (ITC) worth Rs 27.21 crore raising fake purchase invoices worth Rs 166 crore in the name of 22 fake business entities created and operated by him, Commissioner (Commercial Tax and GST) Sushil Kumar Lohani said.

The mastermind is also found to have passed bogus ITC worth Rs 61.79 crore on the strength of fake invoices worth Rs 344 crore to the recipients of both inside and outside Odisha against the sale of goods purchased fictitiously and has defrauded the state exchequer, said Lohani.

The GST fake invoices worth Rs 510 crores have been arranged/issued within a short span of time, he added.

Lohani said the damage caused to the state revenue would have been manifold had the fraud not been detected at the early stage by the Enforcement Wing.

The State GST Enforcement Wing has so far arrested 17 fraudsters for their involvement in issuance of fake invoices to the tune of Rs 5,210 crores (purchase and sales) and availing and passing of bogus ITC worth of Rs 970 crores.

Registration of 19,539 dealers have been cancelled during 2019-20 and 2020-21 so far by the state GST officers on the ground of their non-existence after field enquiry or due to non-filing of returns.