GST Officials Unearthed Fake ITC Racket of Rs.25 Crore; Mastermind Arrested

GST Officials Unearthed Fake ITC Racket of Rs.25 Crore; Mastermind Arrested The GST Department Detect the Fake ITC Racket worth Rs.25 Crore and arrested the accused of this racket. The Mastermind behind the 25.5 crore bogus input tax credit scam was detained by Visakhapatnam GST Intelligence wing personnel. It is interesting to note that same person was detained in 2021 by the same GST Intelligence wing for his involvement in producing phoney invoices for around 265 crore and transferring fake ITC worth 31 crore. An individual from Hyderabad, age 35, who had created 21 fictitious entities, mostly in the states of Andhra Pradesh and Telangana, was captured by the officers. In order to mask illegal activities and evade detection, these businesses were used to build a sophisticated network of fictitious ITC (Input Tax Credit) producing entities at various levels. The businesses run by the person who was arrested produced bogus invoices totaling about 262 crore and distributed phoney ITC to other operating businesses totaling 25.5 crore, allowing them to use the funds fraudulently and avoid paying taxes. Vizag DGGI has been at the forefront of dismantling fake ITC rackets ever since the introduction of the GST. Source: Times of India