‘Mastermind’ of ₹31 crore input tax credit racket arrested
The Hindu
He allegedly created complex network of entities to avoid detection
Officers from the Directorate General of GST Intelligence, Visakhapatnam, arrested a 34-year-old resident of Hyderabad who had allegedly set up 20 fake entities to run a fake input tax credit racket, here on Thursday.
According to a release from the GST Intelligence office, the entities were predominantly set up in the districts of Guntur and Hyderabad and were used to create a complex network of fake ITC (input tax credit) generating entities in different levels. They were spread across different States in a bid to camouflage the fraudulent transactions.
The entities were managed by the accused who generated fake invoices to the tune of ₹265 crore, involving passing of fake ITC to many functional companies to the tune of ₹31 crore, enabling them to fraudulently utilise the same and evade payment of taxes.