GST Fraud: City man arrested for duplicating invoices

Identified as Rambabu Pula, he created non-existent firms and issued invoices without supplying goods or services and availed input tax fraudulently.

Hyderabad: Officials of the anti-evasion team of Secunderabad GST Commissionerate booked a case against a city man for creating duplicating invoices and evading GST.

Identified as Rambabu Pula, he created non-existent firms and issued invoices without supplying goods or services and availed input tax fraudulently. He floated half a dozen firms and passed on the Input Tax Credit (ITC) based on bogus invoices.

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The investigation revealed that the firms — Gopal Trade Impex, Maruthi Enterprises, Siri Enterprises, Lasya Enterprises, Abhigna Enterprises and SV Enterprises — issued duplicate GST invoices/e-way bills and facilitated in the passing of ineligible ITC to the tune of Rs 48.99 crore, of which the department had already recovered Rs 2.31 crore, Commissioner MRR Reddy said.

According to Reddy, he conspired to dupe the exchequer by creating a complex web of inter-connected firms that issue fraudulent tax invoices without supplying goods or services to enable the recipient companies to avail and utilise duplicate ITC, causing loss to the government revenue.

Rambabu accepted his fraud in respect of the first three firms through his statement wherein irregular ITC passed on is Rs 36.94 crore. Further probe into the nexus of Rambabu in respect of the remaining firms is pending.

The GST officials arrested Rambabu and produced him before the Economic Offences court on Tuesday. The court remanded him to judicial custody up to February 16.

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