Directorate General of GST Intelligence (DGGI) sleuths on Wednesday arrested Subramaniam Ashok Kumar, chairman and managing director of Annai Infra Developers Ltd, for committing GST fraud to the tune of Rs 450 crore. The Erode-based company, which is engaged in infrastructure projects and government contracts, received and issued fake invoices without actual supply of services. DGGI officials said this is one of the biggest GST frauds detected in recent times in the Vizag region. In coordinated searches conducted by DGGI sleuths in various parts of AP, Telangana and Tamil Nadu, several incriminating documents were recovered.
The accused has reportedly confessed to raising fake invoices without the actual supply of services. Besides artificially boosting turnover, the company also claimed the input tax credit on the basis of fake invoices. This same modus operandi was followed using multiple GST registrations. As per preliminary quantification, between Sept 2018 to August 2019, nearly Rs 450 crore worth of fake invoices were generated involving ineligible ITC worth Rs 67 crore. The accused was arrested under various provisions of GST laws and remanded in judicial custody till October 30.