Telangana GST Fraud: CGST Unearths Rs 5.68 Crore Tax Evasion Through Alleged Fake SEZ Registration, Proprietor Arrested:

The Rangareddy CGST Commissionerate has detected an alleged GST evasion of around Rs 5.68 crore through a fraudulent Special Economic Zone (SEZ) registration in Telangana. The proprietor of Sri Tirumala Services, D Ravi Kishore, was arrested on September 24 and sent to judicial custody for 14 days by the jurisdictional court.

According to an official release, CGST officers acted on specific intelligence and conducted searches at the firm's business premises in Palwancha, Bhadradri Kothagudem district, as well as at the residence of its proprietor.

The investigation found that the firm had allegedly obtained GST registration by falsely declaring itself as an SEZ unit. This allowed it to purchase goods as zero-rated supplies without paying GST, even though it was not eligible for the benefit.

Officials also found that the Letter of Approval allegedly issued by the Development Commissioner of the Visakhapatnam Special Economic Zone (VSEZ), which the firm used to claim SEZ status, was fake.

The department said the GST evasion was estimated at around Rs 5.68 crore on taxable supplies worth approximately Rs 30 crore. Further investigation into the case is underway.

Arun Kumar, Principal Chief Commissioner, Central Tax, Hyderabad Zone, and Ajazuddin, Principal Commissioner, Rangareddy CGST Commissionerate, said strict action, including prosecution wherever warranted under the law, would be taken against those involved in such fraudulent activities.

The officials also said the department would continue to focus on detecting tax evasion, misuse of tax benefits and removal of goods without payment of GST.