Former CS Somesh named in Rs 1000 crore Telangana GST Scam 

The Capital News 

The Cyberabad Cyber Crime Police have initiated legal proceedings against former chief secretary Somesh Kumar in connection with a high-profile Rs 1000 crore GST scam that has sent shockwaves through Telugu States- Telangana and Andhra Pradesh. Somesh Kumar, now identified as the A-5 accused, faces charges alongside Additional Commissioner Vishveshwar Rao, Deputy Commissioner A Sivarama Prasad, and Assistant Professor Shobhan Babu. The case was registered following a complaint lodged by Commercial Tax Commissioner Ravi Kanuri with the CCS.

The allegations revolve around a massive fraud scheme involving fabricated invoices and irregularities in claiming input tax credit (ITC) amounting to around Rs 1000 crore. An extensive forensic audit of the State Beverages Corporation implicated approximately 75 companies in the misuse of GST provisions. Investigations revealed systemic software manipulations allegedly orchestrated during Somesh Kumar’s tenure, aimed at exploiting GST regulations. Charges under IPC sections 406, 409, 120B, and relevant provisions of the IT Act have been levied against the accused.

Authorities are poised to issue notices to implicated officials for further interrogation and inquiry into the scam. The scandal revolves around the misuse of Integrated Goods and Services Tax (IGST) meant for interstate transactions, where dealers purportedly generated fictitious transactions on paper to claim tax credits. These fraudulent activities, primarily involving transactions in iron, brass, and copper scrap purportedly shipped to other states, were flagged during a rigorous audit by tax authorities.

The Commercial Taxes Commissionerate, in its efforts to combat tax evasion, had collaborated with a private firm to develop detection software. However, lapses in key modules of the software reportedly enabled the perpetration of the scam, underscoring vulnerabilities in GST enforcement mechanisms.

The exposure of this egregious financial malpractice earlier this year sparked widespread public outcry and heightened scrutiny into the governance of tax administration in the region.

Former Chief Secretary Somesh Kumar, who wielded considerable influence over the Commercial Taxes and Excise departments during his tenure, now faces legal repercussions amid mounting calls for transparency and accountability in public service