Credit fraud

Key defendant arrested in GST input tax credit fraud | Vijayawada News

VISAKHAPATNAM: TPS General Directorate of Intelligence (DGGI) Visakhapatnam officials on Wednesday arrested the mastermind behind the fake Rs 31 crore input tax credit racket.
The 34-year-old Hyderabad resident allegedly set up 20 bogus input tax credit entities in Guntur district and also in Hyderabad. These entities have been used to create an intricate web of fake input tax credit generating entities at various levels across the states in an effort to camouflage fraudulent transactions and avoid detection.
According to DGGI co-director Yenneti Bhaskara Rao, these entities were managed by the accused. He generated bogus invoices to the tune of around Rs 265 crore and forwarded fake ITCs to many functional businesses to the tune of Rs 31 crore, allowing them to fraudulently use the same and evade paying taxes. He was arrested on Wednesday and brought before the Vizag Economic Crimes Court, which sentenced him to 14 days in pre-trial detention. He was later handed over to the authorities at Adavivaram Central Prison.
The 34-year-old Hyderabad resident allegedly set up 20 bogus input tax credit entities in Guntur district and also in Hyderabad. He generated fake invoices to the tune of around Rs 265 cr