A significant GST ITC fraud amounting to Rs. 47.32 crore has been unearthed in Maharashtra’s Thane district, leading to the arrest of a businessman allegedly involved in the racket, officials confirmed on Thursday, August 21, 2025.
According to the Central GST (CGST) Thane Commissionerate, the fraud was detected through internally developed intelligence systems and sophisticated data analytics. Investigations revealed that M/s KSM Enterprises, operated by Vivek Rajesh Maurya, had purportedly availed and passed on input tax credit (ITC) without conducting any genuine supply of goods or services.
Under the GST framework, ITC enables businesses to set off the taxes paid on purchases against their tax liability on sales, ensuring avoidance of double taxation. However, fraudulent claims of ITC are a major concern for tax authorities.
Officials carried out a search operation at Maurya’s residence, seizing crucial evidence, including bank passbooks, cheque books, mobile phones, and documents linked to several suspected shell entities.
Maurya was apprehended on August 19 and presented before a judicial magistrate, who ordered his judicial custody for 14 days. Authorities added that the ongoing investigation could reveal additional individuals and firms involved in the fraudulent network.
