Hyderabad: Two persons have been arrested for allegedly being part of an inter-state network that created 10 fake GST-registered firms and fraudulently claimed Rs 11.79 crore Input Tax Credit (ITC), the police said on Thursday.
According to a release from the Cyberabad Police Commissionerate, the accused used forged documents to register the firms and generate fake invoices and fabricated turnovers, causing a loss of Rs 11.79 crore to the government.
The network operated across several states, using fake Aadhaar cards, PAN cards, electricity bills, rental agreements, and other forged documents. They also manipulated government portals using computers to execute large-scale GST fraud.
A 34-year-old man from Gujarat – Organiser and financial handler and a 43-year-old man from the city, were arrested on November 12 in connection with the case in September this year.
The alleged mastermind from Delhi and two others, including a technical operator are absconding.
On the modus operandi of the accused, police said the five accused created ten fake GST-registered firms by fabricating identities using altered Aadhaar cards, PAN cards, electricity bills, rental agreements, GHMC licences, and Labour Department certificates.
Using these forged documents, they obtained SIM cards in false names and completed OTP-based verification on the GST portal, successfully registering GST numbers for firms that never existed in reality.
After obtaining these fake GST numbers, they generated bogus purchase and sales invoices, created fake turnover, and claimed ITC without any physical movement of goods. To support the deception, they created fake E-Waybills using real vehicle numbers with tampered chassis details, police said.
Fake turnover of Rs 53.73 crores was generated and fraudulent ITC of Rs 11.79 crores was claimed, they added.
