GST Scam Worth Rs. 14 Crore Uncovered by Delhi Tax Officials

In a major fraud consisting of Rs 14 crore, the Delhi tax department has uncovered a large fake GST refund scam, which entailed false businesses set up on paper and the transfer of money through false GST Refunds. Officials have arrested a key suspect, the owner of one of the fake businesses. Rs 1.16 crore has been recovered to date.

The investigation used advanced data analysis and checks on money transactions. This led to freezing 45 bank accounts linked to 27 companies involved in the fraud. A case has been filed with the Economic Offences Wing (EOW) for further legal action.

According to a senior official, the fraudsters created and ran four fake companies to illegally claim GST refunds by pretending to do real business. The department tracked the fake transaction through a complex web of companies spread across Delhi, other Indian states, and even foreign countries like Hong Kong and Singapore.

“The same PAN cards, mobile numbers and email addresses were used across multiple companies to trick the GST system,” the official said. “We’ve suspended registrations of implicated Delhi-based firms and flagged the relevant PANs for blocking in coordination with the Income Tax Department.”

Officials have also shared their findings with other state governments to stop similar frauds and prevent future refund misuse.

This case shows how tax cheating methods are becoming more clever and how the government is using better technology to protect tax money.