₹100 Crore GST Fraud Busted Using Toll Data and Empty Trucks

Overview

A Hyderabad-based private company has been caught in a massive GST scam worth over ₹100 crore, involving fake invoices and empty truck movements. The scam, which misused the Input Tax Credit (ITC) mechanism, was detected by the Commercial Taxes Department using vehicle tracking and toll gate data.

This case is a critical example of how data intelligence and enforcement coordination can uncover large-scale tax frauds in India’s GST framework.

How the Scam Worked

The company issued high-value GST invoices for copper consignments allegedly being transported from Telangana to Maharashtra.

In reality, empty vehicles were used. There was no actual movement of goods.

The aim was to illegally claim ITC, significantly reducing the company’s tax liability.

Fraud Summary

Fake Transaction Value: Over ₹100 crore.

Fraudulent ITC Claimed: ₹33.20 crore.

Actual Tax Liability Evaded: Substantial reduction due to fake purchases.

Investigation & Data Analysis

Commercial Taxes Commissioner K Haritha confirmed that:

The fraud was detected via detailed analysis of vehicle movement data.

Toll gate logs from NHAI were compared with e-way bills.

It was found that many trucks passed through tolls with no cargo, contradicting invoice claims.

This marks the first major case in Telangana where toll data was used to uncover a GST scam.

Field Intelligence & Raids

Acting on credible intelligence, simultaneous raids were conducted at:

The company’s corporate office (SP Road).

A warehouse in Bansilalpet.

Two factory sites in Kalakal Automotive Park and Muppireddypally, Medak District.

During these operations, officers seized key evidence, including:

Financial records

Hard drives

Registers

CCTV footage

Legal Action Initiated

A formal complaint has been filed with the Deputy Commissioner of Police, Central Crime Station, Hyderabad.

Authorities are seeking criminal charges against the company's directors.

Investigations are ongoing to identify if other entities are using similar methods.

Connected Case: E-Way Bill Misuse

In a related discovery:

Majid Hussain, Deputy State Tax Officer, identified a vehicle that has been stationary since June 2025.

Despite being non-operational, its registration number was used to generate multiple e-way bills by various taxpayers.

A separate complaint was lodged for initiating criminal proceedings against that vehicle owner.

Government's Stand

Commissioner Haritha emphasized:

The Commercial Taxes Department is actively working to curb all forms of tax evasion and ensure recovery of rightful dues to the government.