Chartered Accountant - GST Scam - GST - Taxscan

The Directorate General of GST Intelligence ( DGGI ), Visakhapatnam Zonal unit has recently busted a major input tax credit (ITC) racket where a 28-year-old Chartered Accountant based at Guntur was arrested for leading the racket.

Reportedly, 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 from which he earned commission from the recipient entities of such fake invoices without the knowledge of the proprietors of those businesses.

Reports says that various firms, mostly created with fictitious addresses in and around Guntur, were identified and simultaneous searches carried out at several locations in Andhra Pradesh.

The department found that the Chartered Accountant passed on a fake credit of approx.. 7.5 crore rupees so far to various infra companies in the two States.

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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