In a significant move against tax evasion, the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has arrested four individuals, including Manohar (34) from Proddatur in YSR Kadapa district, for masterminding a Rs 293 crore GST fraud. The accused are charged with operating 19 fake entities to generate fraudulent invoices, facilitating a massive tax evasion scheme that caused a major loss to government revenues.
The fraud spanned multiple states, including Kadapa, Kurnool, Bengaluru, and Hyderabad, and was executed through bogus entries and fake transactions. According to DGGI officials, the network issued fake invoices totaling Rs 293 crore in taxable value and facilitated fraudulent Input Tax Credit (ITC) claims of Rs 30 crore. This enabled businesses to unlawfully claim and use ITC, avoiding legitimate GST payments.
The mastermind, Manohar, was arrested and presented before the Special Judge Economic Offences Court in Visakhapatnam on December 13, where he was remanded to judicial custody for 14 days. The principal additional director of DGGI, VZU, MRR Reddy, emphasized the importance of identifying fraudsters exploiting personal data to set up fake entities across multiple states.
“The DGGI remains committed to addressing such fraudulent practices to safeguard public revenue and ensure compliance with the GST system,” said Reddy.
The DGGI Visakhapatnam Zonal Unit has been actively cracking down on GST evasion. In the 2024-25 financial year alone, the unit has registered around 79 cases involving Rs 465 crore in taxable value and fake ITC claims worth Rs 84 crore.
The arrests underscore the ongoing efforts by DGGI to combat fake ITC frauds, which severely undermine the integrity of the GST system and deprive the government of critical revenue.