Visakhapatnam: The director-general of GST Intelligence, Visakhapatnam zone, busted a fake input tax credit (ITC) racket on 10 December. A 38-year-old man from Prodattur in Andhra Pradesh who was operating the racket was also arrested.
According to a press release, the accused was involved in issuing fake invoices to the tune of Rs. 84 crores using three fraudulent GST registrations without the knowledge of the proprietors. In turn, he received commission from the recipient firms of such fake invoices.
Various firms with fictitious addresses in and around Guntur were identified and searches were conducted. The searches revealed that the mastermind behind these fake firms had passed on ineligible ITC of Rs. 13 crores (approximately) to various business entities in Andhra Pradesh and Telangana.
The officials tracked the kingpin and arrested him on Thursday. Further investigation is underway.
Recently, the DGGI intensified its efforts to curb fake ITC rackets which lead to evasion of taxes. Last month alone, 11 cases were booked involving the detection of 56 such dummy and non-existent GST registrations. These detections involved fake transactions to the tune of Rs. 527 crores involving duty evasion of Rs. 50 crores. Four persons were also arrested in these cases.