Unsuspecting People's Documents Used for GST Fraud, ITC Claims

Some dishonest people tricked hard-working people like fruit sellers and truck drivers into handing over their personal ID documents, such as Aadhaar and PAN cards.

They paid them between ₹10,000 and ₹20,000 for these documents.

Then the cheats used the documents to start fake companies in the victims' names.

They made up fake sales and purchases and claimed tax benefits called input tax credit, which they pocketed.

A truck driver named Ramesh was shocked to learn that ₹36 crore worth of business was recorded in his name.

He had never carried out any such business.

The police and tax officials are now investigating the fraud.

Officials also remembered an older ₹400-crore scam involving scrap traders.

They worry that some frauds are discovered only after innocent people receive tax notices.

The tax department says it is looking into how the fake registrations were obtained.