Thane man held over GST credit fraud worth ₹47.32 crore

August 21, 2025

A man in Maharashtra’s Thane district has been arrested for alleged involvement in a GST credit fraud amounting to ₹47.32 crore, officials said on Thursday.

The case was uncovered by the Thane commissionerate of Central GST, which indicated that the fraud was detected through a combination of internally developed intelligence and advanced data analysis tools. According to their release, M/s KSM Enterprises, operated by Vivek Rajesh Maurya, fraudulently claimed and passed on input tax credit (ITC) without any actual supply of goods or services taking place.

ITC is a fundamental feature of the GST regime that enables businesses to offset the tax they have paid on purchases against the tax they collect on their outputs. This mechanism is designed to prevent double taxation and to streamline the tax credit chain.

In this instance, investigators assert that the ITC credits claimed by Maurya’s enterprise did not correspond to legitimate commercial activity, signaling a deliberate attempt to siphon credit without corresponding transactions.

During the investigation, a search at Maurya’s residence yielded a trove of incriminating evidence. Among the items recovered were bank passbooks, cheque books, mobile phones, and documents allegedly connected to several fraudulent firms.

The material is expected to help map the broader network involved in the operation and to identify other individuals who may have participated in the scheme.

Maurya was arrested on August 19 and produced before a judicial magistrate, who remanded him in judicial custody for 14 days. The authorities emphasized that the probe is ongoing and that additional names could surface as inquiries proceed. This case underscores ongoing vigilance by tax authorities against complex frauds designed to exploit the ITC mechanism, which could distort revenue collection and undermine the integrity of the GST regime if left unchecked.