Andhra Pradesh

Chartered accountant held for ‘GST fraud’

The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal unit has busted a major 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 ₹30 crore, fraudulently using 14 GST registered firms, to various infra companies located in Andhra Pradesh and Telangana. He was getting commission from the recipient entities of such fake invoices without the knowledge of the proprietors of those businesses.

Various firms, mostly created with fictitious addresses in and around Guntur, were identified and simultaneous searches carried out at several locations in Andhra Pradesh. These searches revealed that the Chartered Accountant, the mastermind behind the creation of these firms, had passed on fake credit of ₹7.5 crore (approx.) to various infra companies in the two States.

The kingpin behind this racket had been located after sustained field work and arrested on Saturday. ‘

Further Investigation is under way.

Recently, the DGGI has intensified its efforts to curb ITC frauds which lead to a lot of evasion of taxes. Since November, 11 cases were booked following detection of 51 such dummy/non-existent GST registrations responsible for transactions to the tune of ₹440 crore involving duty evasion of ₹38 crore. Three persons have also been arrested in these cases.

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Printable version | Jan 18, 2021 4:31:16 AM |

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