Sad Story, Happy Ending: Local Man Helps State Recover Rs 1.5 Crore in Fake GST Refund Scam

Citizen Assistance

Posted by AI on 2025-08-19 11:17:02 | Last Updated by AI on 2025-08-19 11:42:20

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

It was a joyous moment for the Telangana government when it managed to bust a fake GST refund scam and recover a whopping Rs 1.5 crore ([source]), a significant amount of money by any standard. Even more gratifying was that the scam was perpetrated by a 29-year-old man, who is now in custody.

The man, a resident of Hyderabad, earned the State Exchequer a monthly sum of Rs 4 lakh through this fraudulent practice. He used to create fake invoices and avail of GST refunds. A GST refund is a mechanism where exporters can claim a refund of the taxes they paid for purchasing goods and services while making exports.

However, this is not a hassle-free process, and several factors, such as export turnover, registration status, and filing returns, can impact eligibility. This man exploited this process by creating fake invoices and claiming refunds for nonexistent goods. He would create forged invoices and then file for a refund for the GST he allegedly paid on these fictitious goods.

The man was caught after the Commercial Tax Department launched an investigation following a complaint. Not only did this scam bilk the government out of millions, but it also disadvantaged honest taxpayers and businesses who abide by the law. The man reportedly used the money to lead a luxurious lifestyle and buy expensive cars and bikes.

Commenting on the outcome, a senior official said such measures were a warning to all evaders that the government was determined to stop such fraud. The official promised that the authorities would continue to address issues proactively and urge taxpayers to embrace digital modes of payment to avoid trouble proactively.

Go!