The Officers of the Directorate General of GST Intelligence IDGGII. Visakhapatnam on 16.10.2019 arrest. the 45-year-old Managing Director of a company engaged in infrastructure projects and government contracts. The company received and issued fake invoices without the actual supply of services to the tune of around 2 450 crores. This is one of the biggest GST frauds detected in recent times by DGGI, Visakhapatnam.
In coordinated searches conducted in various parts of Andhra Pradesh. Telangana and Tamil Nadu, incriminating documents were recovered. Upon interrogation, the accused confessed to having received and also raising fake invoices without actual supply or receipt of services. Besides artificially boosting the turnover of the company, input tax credit OTC, so availed on the basis of fake invoices was also passed on for further utilization by other major infrastructure companies. This same modus operandi was followed using multiple GST registrations of the company.
Preliminary quantification revealed that from September 2018 to August 2019, almost 2 450 crores worth of fake invoices were generated involving ineligible ITC worth Rs. 67crores (approximately. The accused has been an arrest. on 16.10.2019 under the provisions of GST laws and remanded to judicial custody till 30.10.2019. Since the inception of the GST regime, the Visakhapatnam Zonal Unit of DGGI has made similar detection of fake invoices of around 2 50 crores out of which about 2 40 crores have been realized.
Further investigation is in progress.
