VISAKHAPATNAM: Visakhapatnam GST Intelligence sleuths arrested a chartered accountant on Saturday and busted a major fake input tax credit (ITC) racket operated by the 28-year-old CA based out of Guntur.
The Directorate General of GST Intelligence (DGGI), as part of its drive against ITC rackets that help in evading taxes, has booked 11 cases in the last two months and detected 51 such dummy or non-existent GST registrations. Fake transactions to the tune of Rs 440 crore involving duty evasion of Rs 38 crore have been detected by the DGGI.
The CA was involved in issuing fake GST invoices to the tune of Rs 30 crore, using 14 fraudulent GST-registered firms, to various infra firms located in Andhra Pradesh and Telangana and used to get commission from the recipient entities of such fake invoices without the knowledge of the proprietors of those business entities.
Various firms, mostly created with fictitious addresses in and around Guntur, were identified and simultaneous searches were carried out at various locations in AP.