TGCSB Books Fraudsters for Generating Rs 183 Crore Fake GST Bills

HYDERABAD — The Telangana Cyber Security Bureau (TGCSB) has registered a case against unidentified fraudsters for allegedly hijacking the Goods and Services Tax Identification Number (GSTIN) account of a Choutuppal-based businessman and generating fake invoices and unauthorized e-way bills worth Rs 183.6 crore.

The victims, a 29-year-old businessman and his 30-year-old partner residing in Choutuppal in Yadadri Bhuvanagiri district, run a plywood and hardware business. According to the complaint, the unauthorized transactions were carried out to claim illicit input tax credit (ITC) and cause revenue loss to the government.

The fraud came to light on August 3 when the company's accountant attempted to log in to the GST portal and received an error message stating that the login credentials were invalid. After five to six failed attempts, the accountant alerted one of the company directors.

Upon checking the portal, the director discovered that an unidentified person had altered the registered mobile number and email ID linked to the GSTIN account on the evening of July 23. The director also checked the company's original registered mobile phone and found an SMS confirmation indicating that the account password had been changed on that date.

Following advice from the accountant, the director approached the Assistant Commissioner of State Tax at Nagole Circle, LB Nagar division, located in Nampally, requesting a temporary suspension of the GSTIN account to prevent further unauthorized activity. Commercial tax officials verified the breach, updated the login credentials, and began examining the fraudulent records.

On August 6, the director and the accountant visited the GSTIN office in Nampally to inspect the extent of the tampering. Official verification revealed that the perpetrators had generated 730 fake invoices and unauthorized e-way bills totaling Rs 1,83,61,99,409.

Following the discovery, the business partners submitted a formal complaint to the TGCSB. Cybercrime investigators booked a case under Sections 318(4) for cheating, 319(2) for cheating by personation, and 338 for forgery under the Bharatiya Nyaya Sanhita, alongside Sections 43, 66, 66C, and 66D of the Information Technology Act. Investigators are examining whether the perpetrators filed any formal tax claims for the fraudulent amount as the probe continues.