Officials of Medchal Central GST commissionerate arrested a businessman, Harkara Karthi Chakravarthi, for conspiring and issuing fake GST invoices without physically supplying goods to obtain input tax credit of Rs 25 crore. Chakravarthi is the managing partner of Laxmi Ganesh Enterprises in Qutbullapur. M Srinivas, the principal commissioner of Medchal Central GST, said that Chakravarthi and his shell firms had generated GST invoices for Rs 260 crore in the name of various infra companies in both Telangana and Andhra Pradesh.
The accused floated three shell firms Laxmi Ganesh Enterprises, Manikanta Enterprises and Harkara Iron Steel and Cement Pvt Ltd just to issue fake GST invoices. GST authorities said that the three companies were filing fictitious GST returns. The GST data analytics department identified the fraud where there was a huge variation in returns. The accused issued several high-value fake GST invoices without actual supply of goods to various firms registered in Telangana and Andhra Pradesh.
GST officials searched the residence and office of Chakravarthi and seized incriminating documents. The accused confessed to the officials that he had issued fake GST invoices for financial benefits from July 2017 till date. He has been booked Section 132 of CGST Act, 2018. He was produced in Economic Offences Court, Nampally, on Friday and remanded to judicial custody for 14 days.