Amaravati, January 02, 2026: A major GST fraud originating in Chittoor district has drawn sharp focus from authorities.
Fraudsters allegedly collected Aadhaar, PAN, and photos from vulnerable people like daily-wage workers and petty traders for small payments, then forged documents to secure GST registrations, open bank accounts, and issue bogus invoices often tied to fake scrap deals.
This enabled massive fake Input Tax Credit claims exceeding ₹100 crore, with total inter-state transactions possibly far larger.
The case broke when a former wine shop worker in Chittoor received unexpected GST notices and complained to police. Authorities now probe multiple departments, including State and Central GST teams, reviewing bank records, call data, IP logs, and DigiLocker access.
Around 450 people in the district may be affected, many unaware of shell companies registered in their names. Weak KYC checks at banks and lax GST verifications allowed the scam to grow undetected for years.
