Tax terror: Hyderabad resident masterminds major GST fraud

In a sensational unraveling of a tax scam, a Hyderabad resident has been apprehended by the officers of the Directorate General of GST Intelligence (DGGI) Visakhapatnam Zonal Unit. The cunning mastermind is charged with generating bogus invoices worth an astronomical Rs 108.9 crore and passing on a staggering fake ITC of Rs 19.60 crore through business entities operated by him, all without the actual supply of goods or services.

The ghost entities were nothing but a smoke screen for passing fraudulent input tax credit, with counterfeit GST invoices issued to several business firms and companies scattered across various states. This massive tax scam was perpetrated by the accused using stolen identities such as PAN and Aadhaar numbers, and bank accounts of unsuspecting victims under the veil of acquiring bank loans. The sole motive behind creating these fake business entities was to circulate fraudulent input tax credit, thereby duping the national treasury.

Hyderabad resident masterminds fraudulent GST scheme worth Rs 108.9cr. Photo courtesy of Markus Winkler on Unsplash.

M.R.R. Reddy, the principal additional director general of DGGI, Visakhapatnam Zonal Unit, expressed concern over this rising tide of fraudulent tax activity. He condemned the increasing instances of fake registrations and issuance of phony invoices to pass ineligible input tax credit, identifying it as a grave issue causing substantial financial loss to the government’s coffers.