Sat Jan 10 12:33:39 UTC 2026: # GST Fraud Uncovered in Visakhapatnam: Officials Arrest Managing Partner for ₹5.83 Crore ITC Scam

The Story:

Officials from the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, have apprehended D. N. Srinivasa Reddy, the managing partner of M/s Sri Progressive Projects, for allegedly claiming fraudulent Input Tax Credit (ITC) amounting to ₹5.83 crore. The illicit ITC was acquired through the use of fake invoices without any actual supply of goods or services.

The investigation revealed that these fraudulent invoices were generated by non-existent paper entities. A dummy firm controlled by M. Manoj Kumar, previously arrested in connection to the same case, allegedly raised fake invoices under the guise of sub-contracting works. Kumar retained a commission of around 3% and channeled the remaining funds through mule accounts. D. N. Srinivasa Reddy is identified as the principal beneficiary of this scheme and has been arrested under Section 69 of the CGST Act, 2017.

Key Points:

  • ₹5.83 crore fraudulent Input Tax Credit (ITC) claimed.
  • D. N. Srinivasa Reddy, managing partner of M/s Sri Progressive Projects, arrested.
  • Fake invoices generated by non-existent paper entities.
  • M. Manoj Kumar, previously arrested, involved in creating fake invoices through a dummy firm.
  • Offenses committed attract provisions of Section 132(1)(c) of the CGST Act, 2017.

Key Takeaways:

  • The DGGI is actively pursuing cases of GST fraud involving fake invoices and ITC claims.
  • This case highlights the use of shell companies and mule accounts to facilitate financial crimes.
  • Stringent actions, including arrests, are being taken under the CGST Act, 2017.
  • The investigation demonstrates the DGGI’s capacity to uncover complex schemes involving multiple individuals and entities.
  • This arrest sends a strong message against GST evasion and fraudulent ITC claims.

    Read More

Related News: