The Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru Zonal Unit, has intensified its efforts against tax evasion by uncovering a multi-crore fraud allegedly linked to Ambica Constructions and Contractors, a Bengaluru-based company involved in work contract services. The company's CEO, Praveesh Kuzhipally, has been arrested in connection with the case.
The investigation revealed that the company violated provisions of the GST Act, 2017, through fraudulent practices. These included the wrongful availing of ineligible input tax credit (ITC), suppressing taxable turnover, and failing to remit collected taxes to the government, amounting to approximately Rs 1.16 billion.
A DGGI release stated that the company fraudulently availed ITC using invoices from fictitious suppliers. It explained that advanced data analytics tools and RFID-based vehicle movement tracking were used to uncover the illegal claim of over Rs 110.8 billion in ITC from non-existent suppliers.
