DGGI, Vizag Zonal Unit, busts major Input Tax Credit fraud; two arrested

The Director General of GST Intelligence (DGGI), Visakhapatnam Unit, has busted a major case of fraudulent availment and passing of Input Tax Credit (ITC), involving a network of fictitious GST registered entities operating across Andhra Pradesh and Telangana. The case originated from specific intelligence inputs indicating abnormal patterns in GST registrations.

Using advanced data analytics, risk profiling and field-level verification, the DGGI officers identified a cluster of entities exhibiting no commensurate business activity despite invoice generation and ITC utilisation. Subsequent investigation revealed the existence of a structured syndicate engaged in creating and operating shell firms solely for generating and circulating fake ITC, according to a statement issued by DGGI.