In a major financial crime revelation, the Directorate General of GST Intelligence (DGGI) has uncovered a ₹643.81 crore Goods and Services Tax (GST) fraud involving the creation of over 300 fictitious companies. The scam, which spans multiple states including Andhra Pradesh and Karnataka, is one of the largest GST frauds uncovered in recent years.

The prime accused, who masterminded the entire operation, was arrested in Bengaluru. He is alleged to have set up 302 fake business entities to generate fraudulent invoices, claim fake input tax credit (ITC), and evade GST payments on a massive scale. These shell companies existed only on paper and had no actual business activity.

According to officials, the fraudulent transactions were used to launder money and manipulate the tax system. The DGGI's investigation revealed that the scam had been operating for several months before it was exposed through data analytics and inter-agency collaboration.

Authorities have initiated the process to freeze bank accounts and seize properties connected to the accused. Further arrests are expected as the investigation continues, with teams probing deeper into the network of individuals and businesses linked to the fraud.

This case has raised serious concerns about the vulnerabilities in GST compliance mechanisms and prompted a call for stricter monitoring and verification processes for company registrations.