Officers of the Anti-evasion wing of Vizag Central GST (Govt. of India) have detected a fake invoice racket involving a network of companies.
Enquiries made and searches conducted on M/s Krishna Sai Builders Pvt. Limited and M/s Dew Drops Granite Private Limited have revealed that fake GST credit worth more than Rs.18 Cr. has been transacted by creating fictitious invoices without actual supply of goods or services.
Three persons including the alleged mastermind, Shri Madan Mohan Reddy were arrested and produced today (8/12/2021) before the Economic Offences Court at Visakhapatnam. The magistrate ordered for judicial custody for 14 days and sent for remand. They were sent to Central Prison, Visakhapatnam.
Further investigations in the case are on and the officers are looking at the possibility of several AP & Telangana-based fake firms in the network and the quantum of fraudulent tax amount is likely to go up. Officers explained that paper companies are being floated without any real business or supplies and creating fake GST invoices. Through these, fraudulent tax credit is passed on and utilized by other entities leading to evasion and huge revenue loss to the Government.
They added that the department is using data analysis to detect these fake networks and as per law, the persons involved can be arrested if the amount exceeds a stipulated limit.