Eight arrested as Assam STF busts multi-State GST fraud syndicate

The Special Task Force (STF) of Assam Police has busted an alleged multi-State Goods and Services Tax (GST) fraud syndicate and arrested eight persons from Assam, West Bengal and Bihar in connection with a large-scale Input Tax Credit (ITC) scam that reportedly caused a loss of over Rs 47 crore to the government exchequer.

According to an official statement issued on Monday, June 15, the STF launched an investigation following a complaint from the State GST Department regarding an interstate network allegedly involved in fraudulently availing ITC through fake invoices, bogus e-way bills and fabricated documents without any actual supply or movement of goods.

The investigation uncovered what authorities described as a well-organised network operating across multiple States.

Based on the findings, coordinated raids were conducted during the intervening night of June 14 and 15 at various locations in Guwahati, Kolkata and Patna, leading to the arrest of eight persons.

Three of those arrested were produced before a court in Guwahati, which remanded them to seven days of police custody.

Investigators said the syndicate had fraudulently availed ITC amounting to Rs 21.06 crore between the financial years 2021-22 and 2025-26. The total liability, including interest and penalties, has been estimated at around Rs 47.71 crore.

According to the STF, the entities under investigation generated and utilised fake invoices issued by non-existent taxpayers as well as businesses whose GST registrations had already been cancelled by the authorities.

The probe further revealed that fake invoices and e-way bills were allegedly created without any corresponding commercial transaction or physical movement of goods, solely to facilitate wrongful claims of Input Tax Credit.

The STF said investigations were continuing to identify other individuals and entities linked to the racket, dismantle the wider network involved in facilitating the fraud and prevent further loss of GST revenue.

Officials said the alleged fraud had been carried out over several years through a coordinated interstate operation involving multiple entities.