The CGST Chennai North Commissionerate has busted a large inter-state fake GST invoice racket, uncovering GST evasion of more than ā¹50 crore and arresting a key accused involved in the fraud.According to a PIB release, officers of the CGST Headquarters Preventive Unit, Chennai, exposed a network that fraudulently availed and passed on Input Tax Credit (ITC) using bogus invoices without any movement of goods.
A key operator of the scheme, who ran an unregistered tax consultancyāM/s A.S. Associates in Chennaiāwas arrested. The racket had created over 95 fake business entities across Tamil Nadu and Karnataka using ID credentials of unsuspecting individuals.
Preliminary investigation into 12 of these entities under Chennai North limits revealed fake ITC claims worth ā¹50.85 crore. Probes into the remaining 83 entities, spread across other jurisdictions, are ongoing. Authorities suspect total GST evasion could exceed ā¹350 crore.
The network was traced using advanced digital-footprint analytics, including IP address-based correlation of GST filings. During a search operation, officers seized crucial evidence, including 196 SIM card covers, SIM cards, 42 cheque books, 41 button phones, and several company rubber stamps.
Based on the evidence and voluntary confession, the accused was arrested under Section 69 of the CGST Act for offences under Section 132. He was produced before the Additional Chief Metropolitan Magistrate (Economic Offences), Chennai, and remanded to judicial custody.
Further investigations are underway.