CGST Arrest in Visakhapatnam Over Rs. 81.25 Crore Fake Invoicing

Officers of the Anti-Evasion wing of the Visakhapatnam CGST Commissionerate arrested a city-based resident for allegedly masterminding a large-scale fake invoicing racket involving Rs. 81.25 crore. The detection ranks among the unit’s significant cases in recent months.

Officials said the suspicious transactions carried a GST component of Rs. 11.54 crore. According to the department, the accused fraudulently availed and utilised Input Tax Credit (ITC). He allegedly did so without any actual supply of goods or services. As a result, the practice led to an unlawful reduction of tax liability and a substantial loss to the exchequer.

Prasanth Kumar, Additional Commissioner, said officers conducted inspections and searches at multiple premises linked to the accused. During the operation, teams examined financial records, digital devices, and business documents. They also sought to trace the alleged generation and circulation of fake invoices through entities controlled or operated by him.

Preliminary findings suggest that several firms were used to create a network of bogus transactions. These entities allegedly issued invoices without genuine movement of goods. Consequently, they enabled the wrongful passing of ITC. Meanwhile, investigators are working to identify other beneficiaries and possible accomplices.

Officers arrested the accused under Section 69 of the CGST Act, 2017, and produced him before the Special Judge for Economic Offences, Visakhapatnam. The court remanded him to judicial custody for 14 days.

Further investigation is underway. Authorities said they have not ruled out additional arrests and recovery proceedings, depending on the outcome of the probe.

The department stated that the arrest forms part of its ongoing drive to curb fraudulent ITC claims, dismantle fake billing networks, and safeguard government revenue.