The CGST Chennai North Commissionerate has uncovered a large interstate fake GST invoicing racket involving fraudulent availment and passing of Input Tax Credit (ITC) worth more than ₹50 crore, leading to the arrest of a key accused from Chennai.
According to officials of the Headquarters Preventive Unit, the accused—who operated an unregistered tax consultancy firm under the name M/s A.S. Associates—played a central role in generating and circulating bogus invoices without any actual supply of goods. The officers arrested the individual after identifying his involvement in orchestrating a network of fake entities across Tamil Nadu and Karnataka.
Network of 95 Bogus Businesses Exposed
Preliminary investigation into 12 entities falling under Chennai North jurisdiction revealed fraudulent availment and passing of fake ITC amounting to ₹50.85 crore.
Officials noted that the overall racket spanned over 95 fake business entities, created using the ID credentials of unsuspecting individuals.
The Commissionerate confirmed that investigations related to the remaining 83 entities across multiple jurisdictions are ongoing. Early estimates suggest that the total GST evasion could exceed ₹350 crore.
Digital Footprint Analytics Help Crack the Racket
Authorities relied heavily on advanced digital-footprint analytics, including IP address–based correlation of GST return filings, to trace the movement of electronic evidence and establish links between the entities.
On identifying the main accused’s location, officials conducted a search operation, resulting in the seizure of substantial incriminating material, including:
- 196 SIM card covers
- Multiple SIM cards
- 42 cheque books
- 41 button phones
- Numerous rubber stamps of different companies
Accused Arrested Under CGST Act
The accused was arrested on 22 November 2025 under Section 69 of the CGST Act, for offences punishable under Section 132, which deals with tax evasion and fraudulent ITC claims.
He was produced before the Additional Chief Metropolitan Magistrate (Economic Offences), Chennai, and subsequently remanded to judicial custody.
Further Investigation Underway
The CGST Commissionerate has stated that investigations are still in progress and more arrests or recoveries may follow as the probe deepens into the widespread interstate network.
