Archive · 14 Aug 2026
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.
Criminals in Chittoor and Tirupati districts lured petty traders, fruit vendors and lorry drivers into sharing Aadhaar, PAN, fingerprint and iris details for ₹10,000–₹20,000 each.
The details were used to open firms and bank accounts, secure GST registrations, generate fake invoices and claim huge input tax credit (ITC), which the criminals pocketed.
Telangana lorry driver Ramesh received GST notices after transactions worth ₹36 crore were recorded in his name over five months.
The case revived allegations of an old ₹400-crore scrap-trading fraud for which GST officials had recommended action against seven companies.
A similar Chittoor case last year saw a young man receive two GST notices demanding ₹42.73 lakh for transactions he allegedly knew nothing about.
- Who
- White-collar criminals who lured petty traders, fruit vendors and lorry drivers into sharing personal details, including victim Telangana lorry driver Ramesh (name changed).
- What
- Criminals used stolen documents to open firms and bank accounts, obtain GST registrations, generate fake invoices and claim input tax credit (ITC).
- When
- Recently, with one victim's case involving transactions recorded over a five-month period and a similar case reported last year.
- Where
- Chittoor and Tirupati districts; the Telangana victim is from Ranga Reddy district and the suspect is from Palamaner.
- Why
- To claim huge input tax credits and pocket the money.
- Fraud type
- GST registration and input tax credit (ITC) fraud using stolen personal documents
- Payment to document sharers
- ₹10,000–₹20,000 each
- Fake transactions recorded
- ₹36 crore in five months in one victim's name
- Documents misused
- Aadhaar, PAN, bank passbook, fingerprints, iris
- Affected districts
- Chittoor and Tirupati
- Old scam amount
- ₹400 crore involving scrap traders
- Companies facing recommended action
- Seven companies
- Earlier Chittoor case tax demand
- ₹42.73 lakh
