CHENNAI: In a breakthrough, the CGST Chennai North Commissionerate has detected over Rs 50 crore in fake Input Tax Credit (ITC) in the first phase of its probe into an interstate fake invoice racket. The operation has also led to the arrest of the alleged mastermind, who was running an unregistered tax consultancy, AS Associates, in Chennai, a release by PIB said.
Officials said the network had created more than 95 shell firms across TN and Karnataka using stolen or misused identity credentials. Of these, investigations into 12 entities under Chennai North alone revealed fraudulent ITC claims of Rs 50.9 crore.
Parallel probes into the remaining 83 firms are in progress, and officers suspect the total GST evasion could exceed Rs 350 crore. The racket was uncovered through advanced digital-footprint analytics, including IP-based mapping of GST return filings.
During a search, officers seized 196 SIM card covers and SIMs, 42 cheque books, 41 basic phones, and multiple rubber stamps linked to the bogus companies material evidence that officials say shows the scale of the operation.
The accused was arrested on November 22 under Section 69 of the CGST Act and remanded in judicial custody by the additional chief metropolitan magistrate (economic offences), Chennai. Further investigation is under way.