The CGST Chennai north commissionerate uncovered a major fake GST invoice racket that generated fraudulent Input Tax Credit (ITC) worth 50.85 crore on bogus invoices estimated at around 300 crore. Officers arrested a key suspect, K Junaid Ahmed, who was running an unregistered tax consultancy, AS Associates, in Chennai, Bengaluru, and Vaniyambadi.
According to GST officials, the network created more than 95 fictitious business entities using ID credentials of individuals from TN and Karnataka. These entities were used to claim and pass on fake ITC without any actual movement of goods. The leather businesses in Vaniyambadi were major beneficiaries of the fraud, said officials. The racket was detected through digital-footprint analysis, including IP-based correlation of GST return filings.
Source #TOI
