GST Official arrested a Man from Tamil Nadu in case of Rs.35 Crore Tax Fraud

The Visakhapatnam Zonal Unit of the Directorate General of GST Intelligence (DGGI) arrested a man from Tamil Nadu for allegedly generating fake invoices worth Rs. 230 crore and committing GST input tax credit fraud, resulting in a loss of Rs. 35 crore to the government exchequer.

The arrested accused was identified as Mohammed Saheem .V, a resident of Vellore in Tamil Nadu.

According to officials, the accused is the mastermind behind a complicated GST fraud that involved the formation of 80 shell companies using stolen identities of innocent persons. The accused is said to have run his network throughout Andhra Pradesh, Tamil Nadu, and Kerala.

The officials stated that the accused made bogus input tax credit claims and passed them on to shell firms through generating fake invoices without an underlying supply of goods and services, so fraudulently decreasing GST liabilities.

The accused sent bogus invoices from the shell companies to his firms, allowing him to avoid paying taxes.

A investigation carried out by the DGGI Visakhapatnam Zonal Unit revealed a network of fake firms that only existed on paper. The companies did not conduct business, but rather served as vehicles for generating invoices and claiming input tax credits.

Following searches in Andhra Pradesh, Karnataka, and Tamil Nadu, police acted quickly and arrested the accused.

The accused was taken to Visakhapatnam on transit remand and presented before the Special Judge of the Economic Offences Court. The accused has been sent to judicial custody for 13 days. The investigation is ongoing.