Breaking News: GST Practitioner arrested for Fraud Case of Rs. 35 Crores

A GST Practitioner was arrested by a detective of Directorate General of GST Intelligence (DGGI) for Fraud Case of Rs. 35 Crores. The Practitioner was running a racket of “fake invoicing”.

He has been kept in Judicial Custody at Chanchalaguda central prisons.

The Name of Accused is Rajesh Gandhi and he has had shown business transactions worth Rs 35 crore by issuinginvoices with no actual supply of goods.

The DGGI alleged that the company for which the accused claimed to be a GST practitioner and tax consultant was thought to have been engaged in trading of milk and milk products as well as unwrought lead, battery scrap, iron bars, copper plates etc. According to MCA records, Flora Corporation is involved in agriculture and animal husbandryservices. DGGI additional director general K Balaji Majumdar said, We carried out searches at various locations on February 28 and busted a key module. Documents including copies of fake invoices issued on theletterheadsof various fake firms were seized. Majumdar added, the accused attempted to raise an illegal input tax credit of Rs 6.13 crore by issuing fake invoices. In many instances, back to back transactions have also been made. The officer also said that the accused has confessed to the invoice fraud and GST evasion.

Navya Dairy Products is another company under the scanner of GST sleuths.