The GST Chennai Outer Commissionerate arrested a man from Ambur on Saturday for allegedly orchestrating a massive ITC fraud worth Rs 11.90 crore, officials confirmed.
According to authorities, the accused had obtained multiple GST registrations using forged documents and fictitious addresses. "He floated dummy firms that issued bogus tax invoices without any actual supply of goods or services. These invoices were then used by businesses to fraudulently claim ITC, with the accused collecting commission from the beneficiaries," a GST official said.
The investigation revealed that the fraud involved input tax credits of Rs 11.90 crore on an invoice value of Rs 238 crore. All firms that availed the fraudulent credits have been identified, and further legal action is being initiated against them.
Officials stressed that such fraudulent activities not only lead to revenue loss for the government but also undermine the integrity of India's GST system. Authorities are urging businesses to ensure compliance with GST regulations and report suspicious activities to prevent misuse of the tax credit system.
This arrest highlights the ongoing efforts by GST authorities to crack down on tax evasion and strengthen enforcement mechanisms across the country.
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