B2C Mobile Sales Misused: Faridabad CGST Uncovers Rs. 64.25 Crore GST Scam:

B2C Mobile Sales Misused: Faridabad CGST Uncovers Rs. 64.25 Crore GST Scam The CGST Faridabad Commissionerate has uncovered a well planned Input Tax Credit (ITC) fraud of Rs. 64.25 crore. Two individuals were involved in fraud, named Sanket Mittal and Naveen Tayal, who have not been taken into judicial custody for 14 days by the Faridabad District Court. The arrests are the conclusion of a deep investigation into bogus business-to-business (B2B) transactions that were hidden within real business-to-consumer (B2C) mobile phone sales on websites such as Amazon, Flipkart, and Appario. The fraud was uncovered with the help of data analytics tools and inter-jurisdictional intelligence, which has made it one of the most advanced GST scams in recent months.

Shell Companies and Fake Registrations: Fraud Based on Trickery

The investigation revealed that two shell firms, Balaji Mobile Addition and Monit Enterprises, were the main heads of this fraud. It is found that these companies are falsely built using bogus documents. The names of the accused's grandmother and housekeeper were used to cover the identities of the actual people in charge. Fabricated electricity bills were used to manage the GST registration process; But, Dakshin Haryana Bijli Vitran Nigam (local power distribution company) later assured them they were fake.

Method of operation: iPhone IMEI Numbers Were Misused to Create Fake Purchase Records.

The main part of the scam was the illegal use of IMEI numbers from Apple iPhones sold on legitimate e-commerce sites. These IMEI numbers, obtained through unauthorised means, were falsely entered into records to create fake purchase reports. This permitted the companies to falsely claim tax credits. Apple India confirmed that the phones were sold directly to consumers, not businesses. This proved that the accused companies didn’t buy the phones through legitimate channels, revealing that they had made fake GST invoices.

Bogus E-Way Bills, Incorrect Vehicle Details, and GST Return Errors

Further investigation on E-Way Bills regarding these transactions revealed clear irregularities. For example: Goods of Rs. 5.41 crore were reportedly transferred through Haryana Roadways buses, a noticeable departure from the usual rules for moving legal cargo. Vehicles used for the purpose of transportation were either incorrect, non-commercial, or untraceable. Along with this, zero corrections were noticed in GSTR-2A reconciliations and the ADVAIT system at L4 to L6 supplier levels. There were no past records to prove the ITC claims, concluding that no real transportation of goods had taken place.

Arrests, Legal Representation, and Broader Consequences

Sanket Mittal and Naveen Tayal were avoiding arrest by continuously changing their spots and keeping themselves in obscurity. They were caught by means of an intense surveillance campaign. The case is being tried by Shri Harpreet Singh, Senior Standing Counsel, who in court led evidence to light that the scam was well-planned and well-organised. Officials say this case shows a bigger pattern in digital GST frauds, where cybercriminals take advantage of gaps in e-commerce data, the lack of transparency in B2C transactions, and weak document verification systems.

An Alert and a Call to Action

Officials have said again that the government is now using advanced data analysis and better coordination between departments to fight fake invoices and circular trading. The latest Faridabad tax fraud case demonstrates why one should tighten the process of GST registration, verify if the vendors are legitimate, and cross-check transaction information in real time to prevent such scams. The investigation continues, and there are likely more arrests and attempts at recovering outstanding taxes in the next few weeks.