VISAKHAPATNAM: The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit on Wednesday arrested a person in connection with an investigation into a case involving fraudulent availment and passing on of Input Tax Credit (ITC) to the tune of Rs 19.79 crore in violation of the provisions of the Central Goods and Services Tax Act, 2017.
The arrested has been identified as Eliyaz Basha. The investigations conducted by DGGI revealed that the accused was instrumental in facilitating the availment and onward passing of fake ITC to various entities without supply of services.
The modus operandi involved the issuance of GST invoices without supply of goods, with the sole intention of wrongfully passing on ITC.
Later, found that the accused used M/s Dawood Hardware & Cements in Hindupur of AP, a firm belonging to his brother, to issue such invoices, thereby enabling recipient entities to fraudulently avail ITC in contravention of the provisions of the GST law and thereby evading the payment of lawful tax in cash causing huge loss to the Government revenue.
Eliyaz Basha was arrested for committing a cognisable and non bailable offence under provisions of the Central Goods and Services Tax Act, 2017.
Officials produced him before the Court of Economic Offences in Visakhapatnam, which remanded him to 14 days’ judicial custody under the BNSS, 2023. In 2025-26, DGGI Visakhapatnam officers arrested eight individuals, including masterminds and beneficiaries, and detected a GST fraud exceeding Rs 352 crore, prima facie.