DGGI unveils 643 cr GST fraud, prime accused held

May 24, 2025, 10.55 AM IST

Visakhapatnam:In a major operation, officers from the Directorate General of GST Intelligence (DGGI), Visakhapatnam zonal unit, apprehended an individual involved in a 643.81 crore fraudulent invoice scheme. The fraud resulted in a 115.88 crore loss to the govt treasury through unlawful GST input tax credit claims.

The suspect allegedly set up shell companies using misappropriated identities, executing fraudulent operations across Andhra Pradesh, Tamil Nadu, and Karnataka.

According to the additional director of DGCI-Visakhapatnam zonal unit, N Mohammad Ali, the accused generated unauthorised input tax credit claims and issued false invoices without actual goods or services transactions to unlawfully reduce GST obligations.

The perpetrator established over 302 fictitious firms using stolen identities, enabling recipient companies to avoid tax payments and misappropriate substantial funds from the public treasury.

DGGI Visakhapatnam Zonal Unit's investigation revealed a web of non-existent businesses that were registered solely for issuing fraudulent invoices and claiming unwarranted tax credits.

Following operations across Andhra Pradesh, Karnataka, and Tamil Nadu, authorities arrested the primary suspect, Aboobakr Siddique Syed, a resident of Pernambut in Vellore, in Bengaluru under section 69 of the CGST Act-2017.

[The Times of India]