New Delhi, July 19 -- The Directorate General of GST Intelligence (DGGSTI), an arm of the indirect tax administration, has unearthed a racket involving 90 firms which issue fake invoices to errant companies for tax evasion, the agency said on Friday.

DGGSTI said a resident of Sirsa in Haryana, who was running the racket, has been arrested and produced before a local court. He was sent to 14 days judicial custody.

The agency has found that the accused had set up 90 fake firms to issue bogus invoices, without actually supplying goods. Issuing bogus invoices has been a practice among tax evaders and money launderers for a long time.

This was flagged by a special investigation team on black money, led by former Supreme Court judge M.B. Shah,...