CGST detects over Rs 50 crore fake ITC in TN, Karnataka; key suspect held in Chennai
According to the CGST the network operated through an unregistered tax consultancy firm, AS Associates, in Chennai. Investigators stated that the group created more than 95 fictitious business entities across Tamil Nadu and Karnataka by misusing the identity credentials of individuals.
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CHENNAI: The CGST Chennai North Commissionerate has uncovered a large fake GST invoice network that allegedly enabled fraudulent availment and passing of Input Tax Credit (ITC) without any movement of goods. Officials said that a key suspect linked to the operation has been arrested on Monday.
According to the CGST the network operated through an unregistered tax consultancy firm, A.S. Associates, in Chennai. Investigators stated that the group created more than 95 fictitious business entities across Tamil Nadu and Karnataka by misusing the identity credentials of individuals.
A preliminary probe into 12 of these entities under the Chennai North jurisdiction has revealed fraudulent ITC claims amounting to Rs 50.85 crore. Officials said inquiries into the remaining 83 entities, which fall under other jurisdictions, are continuing. The total GST evasion is suspected to exceed Rs.350 crore.
The network was traced using digital-footprint analysis, including IP-based correlation of GST return filings. Following this, officers identified the location of the main accused and conducted a search, seizing 196 SIM card covers, SIM cards, 42 cheque books, 41 basic mobile phones and several company rubber stamps.
Based on collected evidence and the suspect’s voluntary statements, officials arrested him on 22 November 2025 under Section 69 of the CGST Act for offences punishable under Section 132. He was produced before the Additional Chief Metropolitan Magistrate (Economic Offences), Chennai, and remanded to judicial custody. The investigation is ongoing, officials added.