DGGI Visakhapatnam arrests Mastermind of Fake Input Tax Credit racket

Visakhapatnam: During the course of an investigation initiated by the officers of the Directorate General of GST Intelligence Visakhapatnam Zonal Unit, apprehended a resident of Hyderabad who is a mastermind in generating invoices valued at Rs108.9 crore and passed on fake ITC of Rs 19.60 crore using business entities operated by him without actual supply of goods or services.

These entities are used to facilitate the passing of fraudulent input tax credit by
issuing fake GST invoices to multiple business firms and companies located in various states.

The accused along with their acquaintances used stolen identities such as PAN, Aadhaar and bank accounts of innocent people under the guise of getting bank loans and created fake business entities with the sole purpose of passing on fraudulent input tax credit thereby defrauding the exchequer.

On this occasion, the principal additional director general of DGGI, Visakhapatnam Zonal Unit M.R.R. Reddy said, “The menace of fake registrations and issuance of bogus invoices for passing the ineligible input tax credit is a serious problem, where fraudulent people are involved and creating dubious transactions to cheat and defraud the exchequer.”

Principal ADG advised people not to fall prey to the allurement of fraudsters.