Accountant Misuses GST Login to Create ₹10 Crore Fake Invoices, Faces FIR

In a shocking case of internal fraud, a staff member of a Greater Noida-based home décor exporting company has been accused of generating fake GST invoices worth ₹10 crore to claim a fraudulent Input Tax Credit (ITC) of ₹1.8 crore. The case highlights the growing risk of cyber misuse in financial systems and the urgent need for access control within organizations.

Background of the Case

The complainant, a businesswoman residing in Sector 128, Greater Noida, runs a home décor export company from the Kasna Industrial Area. She filed a cyber crime complaint against her accountant, Abhinav Tyagi, who had worked with her for four to five years and had full access to the company’s financial records and GST portal.

Fake Invoices Worth ₹10 Crore Generated

During a routine financial audit in July 2025, the business owner discovered that her company’s GST credentials were misused to create bogus invoices worth ₹10 crore. These invoices were not linked to any actual business transactions of the firm.

The fake invoices were registered under multiple unrelated business names such as:

BAU Handicrafts

Ujjav Handicrafts

United Security Services

IA Engineering, among others.

Use of Firm’s Old Address Raises Suspicion

Further investigation revealed that one of the fake businesses, Ujjav Handicrafts, had its registered address listed as the previous location of the complainant’s firm. However, none of the invoice details matched any real transactions, confirming that it was a fabricated entity likely created to carry out the scam.

Attempt to Illegally Claim ₹1.8 Crore in GST Credit

The purpose behind generating fake invoices was to illegally claim a GST benefit (ITC) amounting to ₹1.8 crore. This falls under serious tax evasion and cybercrime as per the CGST Act and IT laws.

Threats and Absconding Accused

When the complainant contacted Abhinav Tyagi for clarification, he allegedly threatened her, after which he went absconding. His disappearance further raised suspicion about his direct involvement in the scam.

FIR Filed Under Multiple Legal Sections

Based on the complaint, a cyber crime FIR was registered under the following sections:

IT Act:

Section 66C – Identity theft and misuse of credentials

Bharatiya Nyaya Sanhita (BNS) Sections:

Section 319(2) – Cheating by personation

Section 318(4) – General cheating

Section 338 – Forgery of valuable security, will, etc.

Section 336(3) – Forgery

Section 340(2) – Forged document or electronic record used as genuine

Section 352 – Intentional insult to provoke breach of peace

Section 351(3)(2) – Criminal intimidation

Conclusion

This case is a reminder that even trusted employees can turn into threats if internal systems lack checks and balances. With financial crimes becoming increasingly digital and sophisticated, organizations must strengthen cybersecurity and internal audit protocols to protect sensitive financial data.