CGST Busts Rs.32.28-Cr Bogus ITC Fraud in Hyderabad

As part of ongoing enforcement drive against fraudulent ITC claims, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Secunderabad Commissionerate under the CGST & Customs Zone, Hyderabad has unearthed a significant case of fraudulent availment of ITC amounting to Rs.32.28 crore through bogus invoices and arrested a mastermind of Input Tax Credit fraud based in Musheerabad.

Investigation revealed that the company under the accused, engaged in trading of TMT bars and steel pipes and tubes, had availed fraudulent ITC on the basis of



invoices issued by firms which were found to be non-existent, non-functional, or having cancelled GST registrations for issuing fake invoices. 

Field verification conducted by jurisdictional authorities confirmed that these suppliers were bogus entities with no genuine business activity at their declared places of business.

Further inquiry established that the ITC was availed without actual receipt of goods and was utilized for discharge of GST liability, in contravention of the provisions of the Central Goods and Services Tax Act, 2017.