Crackdown on GST Fraud: Two Masterminds Arrested

The DGGI in Hyderabad arrested two key figures involved in tax evasion through dummy firms, resulting in fraudulent Input Tax Credit of over Rs 273 crore. The crackdown is part of intensified enforcement actions on GST fraud, with 123 cases booked in 2025-26 involving Rs 7,252 crore.

Authorities from the Directorate General of GST Intelligence (DGGI) in Hyderabad have apprehended two individuals for their involvement in organised tax evasion schemes. Investigators identified one suspect as the mastermind of an operation involving 48 dummy firms, which facilitated fraudulent Input Tax Credit (ITC) amounting to Rs 260 crore.

Similarly, another person was discovered to have orchestrated fraudulent ITC activities worth Rs 13.10 crore. Both were detained under the CGST Act, 2017, as revealed in the agency's release on Friday. The DGGI has ramped up its enforcement measures against major GST evasion networks across states.

In recent developments for 2025-26, 123 cases have been registered against extensive organised crime networks involving fraud of Rs 7,252 crore, resulting in 10 arrests. Investigations are ongoing to dismantle these inter-state GST fraud operations further.

(With inputs from agencies.)