In a major crackdown against financial fraud, authorities in Assam have busted a ₹33 crore Goods and Services Tax (GST) fraud racket operating across multiple states. The coordinated enforcement operation led to the arrest of 12 individuals allegedly involved in generating fake invoices, creating shell companies, and fraudulently claiming Input Tax Credit (ITC), officials confirmed.
The action was carried out jointly by the Directorate General of GST Intelligence (DGGI) and state enforcement agencies after an extensive investigation into suspicious financial transactions.
Multi-State Network Exposed
Investigators revealed that the racket had established a network of shell firms across several states to issue fake GST invoices without the actual supply of goods or services.
Officials said the accused allegedly used these fake invoices to:
- Claim fraudulent Input Tax Credit (ITC).
- Evade GST payments.
- Create fictitious business transactions.
- Channel funds through multiple bank accounts.
- Inflate business turnover using forged documents.
The fraudulent transactions are estimated to have caused a tax loss of approximately ₹33 crore.
Coordinated Enforcement Operation
Searches were conducted simultaneously at multiple locations after intelligence agencies tracked suspicious GST filings and financial records.
During the raids, officials seized:
- Financial documents.
- Computers and digital storage devices.
- Mobile phones.
- Company records.
- Bank account details.
- Electronic evidence related to GST filings.
Authorities stated that the recovered material will assist investigators in identifying additional beneficiaries of the fraud.
Twelve Arrested
Twelve people have been arrested for their alleged role in operating the fraudulent network.
They are expected to face charges under various provisions of the Central Goods and Services Tax (CGST) Act, including tax evasion, fraudulent ITC claims, and criminal conspiracy.
Officials indicated that more arrests may follow as the investigation expands.
Investigation Continues
Authorities are examining financial links between the shell companies and businesses located in other states.
Investigators are also analysing:
- GST return filings.
- Banking transactions.
- Company registrations.
- Digital communication records.
- Beneficiary accounts.
Officials have not ruled out the possibility of a larger interstate network being involved.
Government Intensifies Action Against GST Fraud
The Directorate General of GST Intelligence has increased surveillance against fake invoicing and tax fraud across the country.
Officials said technology-based analytics and data matching are helping identify suspicious GST transactions more quickly, leading to faster enforcement action.
The government reiterated its commitment to protecting tax revenue and ensuring compliance with GST laws.
Looking Ahead
The investigation remains ongoing, with authorities working to identify additional individuals and entities connected to the alleged fraud.
Officials stated that strict legal action will be taken against anyone found involved in the illegal GST network while efforts continue to strengthen tax compliance across the country.
Source: Directorate General of GST Intelligence (DGGI), GST authorities, and official enforcement agencies.
Original Report: A ₹33 crore multi-state GST fraud racket was busted in Assam, leading to the arrest of 12 individuals during a coordinated enforcement operation.
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