An inter-state racket engaged in generating fake GST invoices was busted in the city on Saturday. Preliminary enquiry has confirmed a tax evasion of ₹ 50.85 crore involving 12 entities in northern parts of Chennai.
Investigators of the Central Goods and Service Tax (CGST) used digital footprint analytics, including Internet Protocol address-based correlation of GST return filing, to zero-in on the suspects. Going by the modus operandi and network of operations of the accused persons, they said that the overall GST evasion could cross ₹ 350 crore.
GST Commissioner (North) P. Manikkavel said the prime suspect who was operating an unregistered tax consultancy firm, M/s A.S. Associates, in Chennai, was arrested. The accused used fake Aadhaar Cards to open bank accounts and enter into rental agreements with owners of small buildings.
The purpose was only to float a fictitious company and get GST registration. In a couple of months they would vacate and vanish leaving no trace of their identity.
“They remotely operated 93 bank accounts opened in the name of companies that never existed. Fake GST invoices were raised for transporting goods. The benefit of Input Tax Credit fraudulently availed on bogus invoices without any movement of goods was passed on to certain companies located in Tamil Nadu and Karnataka,” he said.
A search was conducted on the premises of the gang in Chennai where dozens of mobile phones used to receive One Time Password for banking transactions were seized. Fake rubber stamps in the name of companies, cheque books, and other incriminating materials were also found.
The special team led by CGST Additional Commissioner Loganatha Reddy was investigating the case further to track down other members of the gang and identify some manufacturing companies in the two states that facilitated the multi-crore scam.
Published – November 24, 2025 11:21 pm IST
