The Uttar Pradesh Special Task Force (STF) has arrested four Delhi-based accountants for their alleged involvement in a fake GST billing racket that reportedly facilitated tax evasion worth approximately ₹18 crore. The accused are alleged to have created and operated shell firms, generated bogus invoices, and enabled fraudulent Input Tax Credit (ITC) claims through fictitious business transactions. The arrests form part of an ongoing crackdown on organized financial fraud exploiting the GST framework.
Accused Allegedly Operated Network of Shell Firms
According to STF officials, the four accused, all associated with accounting and taxation work, allegedly established multiple fake business entities using forged and fraudulently obtained documents. Investigators claim these entities existed largely on paper and were used to create a network of bogus transactions designed to facilitate GST fraud.
The accused allegedly secured GST registrations for non-existent firms and generated fake invoices without any actual supply of goods or services. Such invoices were then reportedly used to pass on fraudulent Input Tax Credit benefits to various beneficiaries.
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Fraudulent Billing Led to Significant Tax Losses
Investigators allege that the network generated fake GST bills amounting to approximately ₹18 crore. By creating fabricated purchase and sale records, the accused are suspected of enabling businesses to claim ineligible tax credits and reduce their GST liabilities unlawfully.
Officials said the operation involved the use of forged documentation, manipulated financial records, and fake compliance filings to make the transactions appear legitimate on the GST portal. Authorities are examining financial records and digital evidence to identify additional beneficiaries and determine the complete scale of the fraud.
STF Conducts Targeted Operation
The arrests were made following a targeted STF operation based on intelligence inputs and financial investigations. Officials stated that the accused had been under surveillance for their suspected role in facilitating GST-related financial irregularities across multiple jurisdictions.
The case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita (BNS), the Information Technology Act, and the GST Act. Investigators are also examining whether additional individuals or entities were involved in creating and operating the alleged shell-company network.
Investigation Expands to Identify Wider Network
Authorities believe the arrested individuals may have been part of a larger organized network involved in fake invoicing and GST fraud. The STF is continuing its investigation to trace financial trails, uncover additional shell entities, and identify businesses that may have benefited from the alleged scheme.
The case highlights growing enforcement efforts against fraudulent GST practices, including the misuse of shell companies, fake invoicing, and bogus ITC claims that result in substantial losses to government revenue. Similar investigations in recent years have uncovered large-scale tax evasion networks operating through fictitious firms and fabricated transactions.
