₹643 Crore GST Fraud Busted by DGGI; Key Accused Nabbed in Bengaluru

In one of the biggest crackdowns on GST evasion this year, the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has uncovered a massive tax fraud worth ₹643.81 crore. The prime accused, Aboobakr Siddique Syed, a resident of Pernambut in Tamil Nadu’s Vellore district, was arrested in Bengaluru.

According to officials, the accused orchestrated a wide-ranging fake invoice scam by creating over 300 bogus firms using forged identities. These shell entities were used to generate fraudulent invoices to avail and pass on input tax credit (ITC) without actual supply of goods or services.

The estimated government revenue loss due to this scam is pegged at ₹115.88 crore.

Nationwide Network of Fake GST Registrations

Investigations revealed that this network spanned across Andhra Pradesh, Karnataka, and Tamil Nadu, with the sole intent of manipulating the GST system for financial gain. By exploiting genuine PAN and Aadhaar details, the accused managed to register dozens of fake companies under the GST framework.

Aboobakr Siddique was arrested under Section 69 of the Central Goods and Services Tax Act, 2017, and produced before the Economic Offences Court in Bengaluru, which remanded him to judicial custody.

DGGI Intensifies Action Against GST Fraud

The DGGI has ramped up efforts to detect GST fraud through advanced data analytics, coordinated intelligence sharing, and surprise inspections. This latest development marks a significant step in the government’s ongoing campaign to curb GST invoice rackets and protect public revenue.

The agency has reaffirmed its commitment to strict enforcement against tax evaders and fraudulent business practices that undermine India’s indirect taxation system.