Iron Scrap Worth Hundreds of Crores Under GST Scanner as Officials Uncover Alleged Fake Invoice Network Linking Chittoor to Industries:

The Andhra Pradesh GST Department has intensified its crackdown on an alleged iron scrap tax evasion racket, with Chittoor district emerging as a major centre for collecting and transporting scrap.

According to sources, iron scrap collected in Chittoor is being loaded onto vehicles and transported with invoices falsely showing Karnataka and other states as its place of origin. The scrap is then supplied to industries in Naidupeta and Hindupur using fake bills to evade taxes worth hundreds of crores of rupees.

To prevent such illegal activities, the GST Department has decided to increase surveillance along key routes. Special teams will be deployed at important locations and near industrial units to check suspicious vehicles carrying iron scrap before they reach their destinations.

The department has also sought the support of the Chittoor district administration to stop the illegal transportation of scrap. GST officials recently met Collector Sumit Kumar and requested the Transport Department to help check vehicles coming from other states but carrying scrap collected locally.

GST Joint Commissioner A. Bharat Harshavardhan and Deputy Commissioner Srinivasulu Naidu also met iron scrap collectors in Tirupati last week. They advised traders to sell their scrap directly to industries instead of depending on middlemen.

However, scrap traders said industries are not willing to buy directly from small collectors. This forces them to depend on middlemen to sell their materials.

GST officials are now planning to take up the issue with the state government and seek its intervention. They want the government to persuade industries to change their purchasing policies and buy iron scrap directly from small traders to prevent tax evasion.