
VISAKHAPATNAM: The Directorate General of GST Intelligence (DGGI)-Visakhapatnam Zonal Unit arrested an individual involved in generating fake invoices worth Rs 230 crore, leading to a massive GST (Goods and Services Tax) input tax credit fraud and causing a loss of Rs 35 crore to the government exchequer.
The accused, identified as Mohammad Saheem V, a native of Pernambut in Vellore, Tamil Nadu, is believed to have masterminded a complex scheme, involving the creation of shell companies by using stolen identities of unsuspecting individuals and operating his network in Andhra Pradesh, Tamil Nadu and Karnataka.
According to a statement issued by the DGGI, the fraud was orchestrated by the accused to generate fraudulent input tax credit claims, which were subsequently passed on to other businesses by generating fake invoices without underlying supply of goods or services to illegally reduce GST liabilities. Saheem created more than 80 firms with stolen identities, allowed the receiving firms of these invoices to evade tax payments and divert substantial sums of money by defrauding the public exchequer.
Accused sent to judicial custody till January 24
These companies did not conduct any legitimate business activities, but were utilised as vehicles for issuing fake invoices and claiming unearned tax credits.
Following search operations in the three States, the authorities arrested the accused under Section 69 of CGST Act, 2017. He was brought through transit remand and produced before the Special Judge for Economic Offences in Visakhapatnam.
The court has remanded Saheem to judicial custody till January 24. Further investigation is underway.
In a statement issued on Tuesday, DGGI Additional Director (Visakhapatnam Zonal Unit) N Mohammed Ali said, “The arrest marks a major step in our ongoing efforts to crack down on tax fraud and safeguard the integrity of the GST system. This fraud not only harms the government revenue, but also undermines the trust of honest taxpayers.”