In a major crackdown on tax evasion, Assam police have uncovered a multi-state Goods and Services Tax (GST) fraud network involving fake Input Tax Credit (ITC) claims, leading to the arrest of eight persons across Guwahati, Kolkata, and Patna.
According to an official statement, the scam has resulted in an estimated loss exceeding Rs 47 crore to the state exchequer over the past five years. The financial impact, including interest and penalties, spans the period from the financial year 2021–22 to 2025–26.
The case was registered by the Special Task Force (STF) following a complaint lodged by the Assam GST Department. Authorities alleged that an interstate syndicate had been fraudulently claiming ITC using fake invoices, forged e-way bills, and fabricated records, despite there being no actual supply or transportation of goods.
Investigations revealed a highly organised network operating across multiple states, coordinating fraudulent transactions through a web of shell entities and falsified documentation.
Acting on these findings, STF teams conducted simultaneous raids on the nights of June 14 and 15 at several locations in Guwahati, Kolkata, and Patna. The operations led to the detention of eight suspects allegedly linked to the racket.
Among those apprehended, three were arrested in Guwahati and later produced before a local court, which remanded them to seven days of police custody.
So far, investigators have detected fraudulent ITC claims amounting to Rs 21.06 crore during the period under review. Including interest and penalties, the total liability is estimated at approximately Rs 47.71 crore.
The probe further revealed that the firms involved had allegedly generated fake invoices in the names of non-existent businesses, as well as entities whose GST registrations had already been cancelled. Officials stated that bogus invoices and e-way bills were created without any genuine commercial transaction or movement of goods, solely to obtain wrongful ITC benefits.
The STF said that efforts are ongoing to identify and apprehend other individuals and entities connected to the fraud. Authorities are also working to dismantle the broader network behind the operation and prevent further losses to government revenue from GST-related offences.
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