₹1,464 crore GST fake invoicing scam exposed across Karnataka and Tamil Nadu

Key Highlights

• The case was cracked using advanced GST analytics, including the department’s Non-Genuine Taxpayer (NGTP) module and IP address tracking from the GST back office.
• The data revealed circular invoicing patterns and abnormal ITC flows among linked entities, triggering targeted searches and seizures.
• Investigations showed the accused had obtained multiple GST registrations using forged documents, including online-purchased stamp papers, fake lease deeds, falsified signatures, fabricated tax receipts and counterfeit notarial stamps.
• These registrations were used to create layers of shell companies that generated fake invoices to pass on illicit ITC.
• After siphoning off substantial credits, several entities voluntarily cancelled their GST registrations to evade audits and erase digital trails, officials said, calling it an emerging modus operandi that has prompted the department to consider tighter safeguards.