DGGI arrested Managing Director of a company in fake invoices racket

DGGI arrested Managing Director of a company in fake invoices racket for availed input tax credit (ITC) with tax evasion of the tune of 22.79 Crores

The officers of the Visakhapatnam Zonal Unit of the Directorate General of GST Intelligence (DGGI) has arrested the managing Director of a company located in Rajam and dealing in manufacture of “Cables and Conductors” as well as trading of Iron & Steels, High carbon ferrochrone, agriculture product; etc.

As per the Press Note of the DGGI, Visakhapatnam, following intelligence developed by the officers that fake invoices were received by the company without receipt of goods from various companies and fake invoices were issued without supply of goods, searches were conducted at various place in Rajam, Visakhapatnam, Vizianagaram and Hyderabad.

Following recovery of incriminating documents, the Managing Director of the company admitted that they have received only invoices without receipt of goods and availed input tax credit to the tune of Rs 8.94 Crores and also issued fake invoices without supply of goods to other companies involving CST to the tune of Rs 13.85 Crores. He has also admitted that they have sought to inflate their turnover artificially to receive bank loans fraudulently.

The Managing Director of the company was arrested on 30.01.2019 under the provision of CST laws and remanded to judicial custody till 13.02.2019.

As per the Press Note, further investigation is in progress