Officials from the Directorate-General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, on Saturday (February 7) arrested the proprietor of Labbaik Minerals, Sheik Shabbir, for allegedly availing and utilising fake Goods and Services Tax (GST) Input Tax Credit, causing a loss of ₹6.59 crore to the government exchequer.
According to the DGGI, during the inspections conducted in respect of various suppliers of Labbaik Minerals, it was revealed that the suppliers had obtained registrations by uploading fraudulent documents like rental agreements. Sheik Shabbir, a resident of Nandyal district, had availed of and utilised ITC based on the fake invoices to illegally reduce GST liabilities.
The accused was brought to Visakhapatnam and produced before the Special Judge Economic Offences Court, Visakhapatnam, which remanded him in judicial custody for 14 days. Further investigation is on.
