GST fraud worth Rs 171. 45 crore detected; one arrested
The Visakhapatnam zonal unit investigating a major GST evasion case arrested Maddi Prasad, a key individual involved in the supply of wood to plywood industries here and in Bangalore.;
Visakhapatnam: The Visakhapatnam zonal unit investigating a major GST evasion case arrested Maddi Prasad, a key individual involved in the supply of wood to plywood industries here and in Bangalore.
The accused was arrested in Chikmagalur, Karnataka, on a charge that he received bogus invoices worth Rs 171.45 crore. This fraudulent activity resulted in a tax evasion of Rs 30.85 crore in Goods and Services Tax.
The arrest came after an investigation by the tax authorities. They detected irregularities related to the supply of nonexistent goods. Accused Maddi Prasad used fake invoices to falsely claim input tax credits, thereby evading tax liability.
Fraudulent invoices were received by firms operated by Maddi Prasad and his family members without any actual receipt of goods, which adversely impacted the financial system, stated an official release by the tax department on Friday.
"Maddi Prasad, accused of receiving bogus input tax credit worth Rs 30.85 crore, has been arrested under Section 69 of CGST Act 2017. The accused was produced before the Special Judge for Economic Offences Court here, which remanded him to judicial custody for 14 days," the release said.
