Hyderabad: A major DGGI GST fraud was uncovered across Telangana and Andhra Pradesh, with officials detecting ₹217 crore in tax evasion through fake transactions.
Officials from the Directorate General of GST Intelligence conducted coordinated raids based on specific intelligence inputs. The operation targeted a network operating from Hyderabad and spanning both Telugu states.
Investigators found that nearly 72 shell companies were involved in the DGGI GST fraud. These firms existed largely on paper and conducted no actual supply of goods or services. Instead, they generated fake invoices to create artificial business activity.
The probe revealed that these entities fabricated transactions worth ₹1,472 crore. Authorities said the transactions were created using forged documentation without any real economic activity.
DGGI GST fraud exposes input tax credit misuse
The investigation showed that the accused not only evaded GST payments but also fraudulently claimed input tax credit. Officials identified wrongful ITC claims amounting to ₹217 crore as part of the DGGI GST fraud.
Subsequently, DGGI teams carried out simultaneous inspections at multiple locations. These included the main offices in Hyderabad and several premises in Andhra Pradesh.
During the raids, officers seized key digital evidence and copies of fake invoices. These materials are expected to play a crucial role in establishing the full scope of the fraud.
Moreover, officials indicated that the investigation is ongoing. Further details regarding the individuals and entities involved in the DGGI GST fraud are yet to be disclosed.