In a major case highlighting the growing nexus between cybercrime and financial fraud, the Thane cyber police have registered a case against a Mumbai resident and his associates for allegedly orchestrating a ₹75.48 crore Goods and Services Tax (GST) scam. The accused reportedly exploited the online credentials of unsuspecting victims to file fraudulent GST returns and generate fake invoices, thereby creating an illusion of massive business transactions and cheating both individuals and the government exchequer.

The Modus Operandi

According to officials, the elaborate fraud was carried out between November 2024 and April 2025. The accused, identified as a 33-year-old resident of Andheri in Mumbai, allegedly conspired with unidentified accomplices to misuse the digital credentials of a laptop sales and service professional. The victim, who filed a police complaint on October 31, stated that the accused had befriended him and another associate under the pretext of business collaboration. Gaining their trust, the accused obtained access to their GST user IDs and passwords—critical information required for filing tax returns and generating invoices online.

Using these stolen credentials, the fraudsters allegedly created multiple shell companies—fake entities that exist only on paper—and filed fabricated GST returns in their names. By generating and uploading fictitious bills, they artificially inflated transaction volumes worth ₹75.48 crore. This not only distorted the tax records but also facilitated potential wrongful input tax credit (ITC) claims, resulting in significant losses to the government.

Officials explained that such schemes are designed to create an illusion of legitimate trade activity. Fraudsters typically use fake invoices to either claim refunds, evade taxes, or show inflated turnovers to launder illicit funds. The falsified transactions in this case, pegged at ₹75,48,42,087, represent one of the larger cyber-enabled GST frauds detected in recent months in Maharashtra.

The Victims’ Complaint

The complainant, a laptop sales professional, told police that he and his friend had been approached by the accused with a business proposal involving online electronics trading. Believing the offer to be genuine, they shared their login details to facilitate what they thought were legitimate GST filings. However, months later, they discovered irregularities in their tax records and realized that fraudulent transactions had been recorded under their names.

When the victims approached the authorities, preliminary checks by the GST department revealed discrepancies that could not be reconciled with their actual business activities. This discovery prompted the victims to lodge a formal complaint with the Thane cyber police, leading to the registration of a case and the initiation of a detailed investigation.

The Case and Legal Charges

Following the complaint, police registered a First Information Report (FIR) against the accused and his unidentified associates under multiple sections of the Indian Penal Code (IPC), including cheating and forgery. They have also invoked provisions of the Information Technology Act, given the misuse of digital identities and online platforms.

A senior official from the Thane Cyber Police Station said, “This appears to be a sophisticated cyber and financial crime involving the misuse of confidential online credentials to file fraudulent GST claims. We are tracing the digital footprint and the financial trail of the shell companies involved.”

Investigators are currently scrutinizing the GST portal records, IP addresses used for login, and the transaction details linked to the fraudulent filings. The authorities are also coordinating with the GST Intelligence Wing and forensic experts to identify the network of companies and bank accounts used to route the fake transactions.

Digital Trail and Cyber Forensics

Preliminary investigations suggest that the accused may have used advanced cyber techniques to conceal their digital footprint. Officials suspect that the fraudulent filings were made using virtual private networks (VPNs) and proxy servers to mask the origin of the logins. Several of the shell companies involved in the fraud were allegedly registered with fake addresses and mobile numbers, making the verification process more challenging.

The cyber police have begun analyzing electronic devices, emails, and transaction logs recovered during early inquiries. The financial data is being examined for linkages with known tax evasion networks operating in the Mumbai-Thane region. Investigators are also exploring whether the accused acted independently or were part of a larger organized racket that has targeted other businesses in a similar fashion.

The Scale of GST-Related Cybercrime

This case adds to a growing list of GST-related frauds being uncovered across India since the introduction of the online taxation system. While digitization has streamlined tax filing and improved transparency, it has also opened new avenues for cybercriminals to exploit loopholes. Fraudsters have increasingly used stolen credentials, fake invoices, and shell firms to manipulate the system and siphon off large sums of money.

Experts in cyber forensics note that such crimes require a blend of financial knowledge and technological expertise. Fraudsters exploit weaknesses in authentication systems or rely on social engineering tactics—such as building personal trust—to gain access to victims’ digital information. Once inside the system, they can file fake returns, claim input tax credits, and transfer funds through a maze of shell entities, making detection difficult until the discrepancies surface in audits.

Police and Government Response

The Thane cyber police have stepped up vigilance and coordination with the GST authorities to detect and prevent similar scams. “We are working closely with tax officials to cross-check suspicious filings and trace the individuals behind the shell companies,” the investigating officer said. “Digital evidence is being preserved carefully to build a strong case under both cyber and financial crime statutes.”

Authorities have also urged citizens and business owners to exercise caution while sharing sensitive login details or digital certificates. Officials recommend that GST users enable two-factor authentication, change passwords regularly, and verify any third-party requests for access to their accounts.

The case underscores the importance of cybersecurity awareness among small business owners and professionals, many of whom rely heavily on online platforms but may not fully understand the risks involved. With India’s digital economy expanding rapidly, the need for secure digital practices has become critical in protecting individuals and the state from large-scale financial manipulation.

The Road Ahead

As the investigation progresses, the police are focusing on unmasking the full network behind the scam. Several bank accounts and corporate entities suspected to be linked with the fraudulent transactions are under scrutiny. Investigators are also working to identify potential end-beneficiaries of the fake invoices and assess whether tax credits were actually claimed based on the fabricated filings.

If proven, the fraud not only represents a significant financial crime but also a serious breach of digital trust. It highlights the evolving nature of economic offences in the digital age, where traditional financial crimes increasingly intersect with cybercrime techniques.

The accused, currently absconding, is expected to face charges under sections related to cheating (Section 420), forgery (Sections 465, 468, 471), and criminal conspiracy (Section 120B) of the IPC, along with provisions of the Information Technology Act, 2000. Police are also considering adding sections related to the Prevention of Money Laundering Act (PMLA) if the funds trail confirms laundering activity.

Conclusion

The ₹75.48 crore GST fraud case serves as a stark reminder of how technological advancements can be misused to perpetrate large-scale financial crimes. What began as a simple act of misplaced trust—sharing login credentials—has evolved into a complex web of deceit involving cyber tools, fake firms, and fraudulent tax filings.

For Bengaluru, Mumbai, and other rapidly digitizing Indian cities, such incidents reinforce the urgent need for enhanced digital literacy, stronger authentication mechanisms, and robust enforcement frameworks. As the Thane cyber police deepen their probe, the case stands as both a warning and a learning moment — a call for businesses and individuals alike to safeguard their digital identities with as much care as their financial assets.