India, Feb. 13 -- The Directorate General of GST Intelligence (DGGI), Pune zonal unit, has uncovered a massive GST fraud amounting to Rs.1,196 crore and has arrested one individual in connection with the case, Finance Ministry said in a statement on Wednesday.

The investigation, involving searches at multiple locations in Pune, Delhi, Noida and Muzaffarnagar, has revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit (ITC) transactions.

"The accused had set up shell entities with no legitimate business operations, generating fake invoices and e-way bills to create a facade of genuine trade. However, these e-way bills had no RFID movements associated with them, confirming the absence of actual supply o...