F.No.DGGI/INV/GST/2045/2020   Dt. 05.12.2020

PRESS NOTE

Visakhapatnam GST Intelligence arrests CA for major GST fraud

Directorate General of GST Intelligence (DGGI) Visakhapatnam Zonal unit has busted a major fake input tax credit (ITC) racket being operated by a 28 year-old Chartered Accountant based at Guntur. The CA was involved in issuing fake GST invoices to the tune of around Rs. 30 crores fraudulently using 14 GST registered firms to various infra firms located in Andhra Pradesh and Telangana, etc., and in turn getting commission from the recipient entities of such fake invoices without the knowledge of the proprietors of those business entities. Various firms, mostly created with fictitious addresses in and around Guntur were identified and simultaneous searches carried out at various locations in Andhra Pradesh. These searches have revealed that the Chartered Accountant, the mastermind behind the creation of these firms, had passed on fake credit of Rs. 7.5 crores (approx.) to various infra companies in Andhra Pradesh and Telangana.Visakhapatnam GST Intelligence arrests CA for major GST fraud

The kingpin behind this racket was located after sustained field work and arrested today. Further Investigation is underway.

Recently, DGGI has intensified its efforts on curbing fake ITC rackets which leads to a lot of evasion of taxes. Since November this year alone, 11 Cases were booked involving detection of 51 such dummy/non-existent GST registrations. These detections involved fake transactions to the tune of Rs.440 crores involving duty evasion of Rs.38 crores. Three persons have also been arrested in these cases.

Source- Social Media and Unconfirmed.

More Under Goods and Services Tax

9 Comments

    1. kapil gupta says:

      ICAI has a strict code of conduct under which these kind of misdeeds are handled and proper penalties and punishments are given to offenders. Every community, religion, profession etc have their share of black sheep and community of Chartered Accountants is no exception. On the other hand, there are so many CAs who are doing social projects for the benefit of Indians and man kind

  1. Sree says:

    Fraud thinkings or un lawful acts mainly done by fradulenters by taking ideas from chartered accountants and other leaded professionals. Pl take care

    1. kapil gupta says:

      But who takes the maximum financial benefit out of this fraudulent transaction, CA or Businessman. I think they both are culprits and both should be handled in a similar way.

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