AMARAVATI, Mar 26: The Directorate General of Goods and Services Tax Intelligence (DGGI) has arrested two individuals in connection with a large-scale Goods and Services Tax (GST) fraud involving fake Input Tax Credit (ITC), officials said.
The arrests were carried out by the agency’s Visakhapatnam Zonal Unit in Hyderabad following specific intelligence inputs generated through data analysis and coordination with multiple agencies. The operation targeted an organised inter-state network engaged in tax evasion.
According to an official statement, the accused were allegedly involved in a fraudulent ITC scheme amounting to nearly ₹177 crore. Investigators found that the duo had been operating a network of 66 shell proprietorship firms to facilitate bogus transactions and claim ineligible tax credits.
Officials said the crackdown is part of ongoing efforts to dismantle structured GST evasion networks and curb fraudulent activities across states. The accused have been booked under relevant provisions of the CGST Act, 2017.
Authorities also revealed that another key suspect, believed to be the mastermind behind the operation, remains absconding, and efforts are underway to trace and apprehend him.