VISAKHAPATNAM: The officials of the anti-evasion wing of Vizag central GST busted a fake invoice racket which involved a network of companies and arrested three persons including the mastermind, Madan Mohan Reddy.
Searches conducted on M/s Krishna Sai Constructions Private Limited and M/s Dew Drops Granite Private Limited revealed that fake GST credit worth more than Rs 18 crore was transacted by creating fictitious invoices without actual supply of goods or services.
Three persons including the Madan Mohan Reddy were arrested and produced before the economic offences court in the city on Wednesday. The magistrate ordered judicial custody for 14 days and sent them to remand. Later, they were taken to central prison. Further investigations into the case are on and the officials are focussing on several AP and Telangana-based fake firms involved in the network. “The quantum of fraudulent tax amount is likely to go up,” additional commissioner, GST, Ravi Kiran Edara said.
Officers say paper companies are floated without any real businesses or supplies and fake GST invoices created. Fraudulent tax credit is passed on and being utilised by other entities leading to huge revenue loss to the government. They added that the department is using data analysis to detect fake networks.
