The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has arrested Maddi Prasad in Karnataka for his alleged involvement in a massive GST fraud case. Authorities claim Prasad orchestrated a bogus invoicing scam worth Rs 171.45 crore, leading to a tax evasion of Rs 30.85 crore.
Following an extensive probe, tax officials discovered that Prasad had generated fraudulent invoices for the supply of non-existent goods. These invoices were used to falsely claim input tax credits, significantly reducing tax liabilities. The investigation also revealed that multiple firms, operated by Prasad and his family members, received these fake invoices without any actual supply of goods.
Prasad was arrested under Section 69 of the CGST Act, 2017 and was presented before the Special Judge for Economic Offences Court, Visakhapatnam. Authorities continue to investigate the extent of the fraud and potential involvement of other entities.
This arrest is part of the government's ongoing crackdown on GST fraud, as tax authorities intensify scrutiny on businesses suspected of engaging in fake invoicing and tax evasion.
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