DGGI Vizag unit arrests one for GST fraud worth Rs 19.79 crore
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Visakhapatnam: Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has arrested Eliyaz Basha in connection with an investigation into a case involving fraudulent availment and passing on of Input Tax Credit (ITC) to the tune of Rs19.79 crore in violation of the provisions of the Central Goods and Services Tax Act, 2017.
Investigations conducted by DGGI revealed that the accused was instrumental in facilitating the availment and onward passing of fake ITC to various entities without any actual supply of goods or services.
The modus operandi involved the issuance of GST invoices without supply of goods, with the sole intention of wrongfully passing on ITC.
It was further found that the accused used M/s Dawood Hardware & Cements in Hindupur of Andhra Pradesh state, a firm belonging to his brother, to issue such invoices, thereby enabling recipient entities to fraudulently avail ITC in contravention of the provisions of the GST law and thereby evading the payment of lawful tax in cash causing huge loss to the Government revenue.
Based on the evidence gathered during the course of investigation, Eliyaz Basha was arrested for committing a cognizable and non bailable offence under the relevant provisions of the Central Goods and Services Tax Act, 2017.
He has been produced before the Court of Economic Offences here. The accused has been remanded to 14 days of judicial custody in terms of provisions of Bharatiya Nagarika Suraksha Sanhitha 2023 and further investigation in the matter is underway.
DGGI reiterated on Wednesday its firm commitment to detecting and dismantling fake invoice rackets and protecting government revenue.
In FY 2025-26, officers of DGGI, Vizag have arrested eight individuals including masterminds and final beneficiaries wherein the GST fraud involving more than Rs352 crore has been detected prima-facie.
Trade and industry are advised to ensure due diligence in their business transactions and comply strictly with GST law, as issuance or use of fake invoices and fraudulent ITC will attract stringent penal and prosecution action.
