Hyderabad: A huge GST fraud case has surfaced in Hyderabad, where Bala Corporation, proprietor Nasari Vinod Kumar, has been accused of making fraudulent GST registration and using it to claim and avail fake input tax credit (ITC) of Rs 6.25 crore.
The company, officials say, acquired GST registration with fake electricity bills pertinent to the non-existent address of Khairathabad, Somajiguda Circle 1 under the Punjagutta Division. Although registered to trade toys and video games, the company created up to 1,268 e-way bills in March and April 2025 for unrelated items like cement, copper pipes, and plywood.
The investigations found that Bala Corporation fraudulently availed of Rs 6.25 crore of IGST input tax credit and transferred false ITC of the same value under SGST and CGST to 32 other businesses. This was done without any physical movement or receipt of goods, directly violating Sections 16(2) and 122 of the CGST/TGST Act, 2017.
After a field inspection and panchanama by Assistant Commercial Tax Officer (ACTO), Nagi Reddy, the GST registration of the firm was cancelled retrospectively with effect from 25 February.
As a precaution to stop further revenue loss, recovery notices have been sent to the jurisdictional officers of the 32 taxpayer entities who have derived funds based on the bogus ITC.
An FIR has been lodged at the Central Crime Station under the concerned provisions of the Bharatiya Nyaya Sanhita (BNS), 2023.
Authorities have stated that a thorough investigation is being conducted to ensure stern action against those found guilty of committing or profiting from GST fraud.
