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