The Rise of Fake ITC Networks: Ahmedabad’s Role in Gujarat’s GST Scams:

The Rise of Fake ITC Networks: Ahmedabad’s Role in Gujarat’s GST Scams Ahmedabad has become the biggest centre in Gujarat for fake GST billing and false Input Tax Credit (ITC) fraud over the last five years. Several large scams have been found here, involving fake companies, dummy directors, and paper transactions. From 2019 to early 2026, GST authorities found that thousands of crores were involved in fake invoices across Gujarat. In most major cases, Ahmedabad was at the centre. In 2019, officers busted a network of 66 fake firms in Vadodara that issued false bills worth Rs. 1,210 crore and claimed Rs. 177 crore in fake ITC. The same year, scams were also found in Bhavnagar and Surat. In 2020-21, fake ITC worth Rs. 173 crore was detected across Himmatnagar, Patan, and Gandhinagar.

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In 2021-22, Ahmedabad again came into focus. A big network in Ahmedabad and Jamnagar created fake bills worth Rs. 1,403 crore and claimed Rs. 252 crore in false ITC. Another case in Ahmedabad alone involved Rs. 2,435 crore in fake invoices, mainly in trading and bullion businesses. In 2022-23, a nationwide investigation found that about 25% of Aadhaar-linked GST fraud cases had links to Gujarat. Over 2,700 suspicious GST registrations were found, many made using fake or misused Aadhaar details. The biggest scam was found in 2023-24. Officials uncovered fake invoices worth Rs. 6,030 crore and tax evasion of about Rs. 910 crore. Out of 282 companies investigated, 84 were based in Ahmedabad, the highest from any city.

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In 2024 and 2025, such cases continued. In late 2024, four people were arrested in Ahmedabad for a Rs. 200 crore ITC fraud. In early 2026, a pharma group in the city was found claiming Rs. 20.68 crore in fake ITC. In 2025, another Rs. 560 crore fake billing case was exposed, led by a chartered accountant from Jamnagar. A senior SGST official said, "Fake GST billing networks typically register firms using dummy identities, fake addresses and misused Aadhaar details. They issue invoices without actual supply of goods, and the bogus ITC is either sold for commission or used to cut tax liability."

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The government is using better data analysis and teamwork between agencies to catch such fraud. However, officers admit that criminals quickly change their methods to avoid getting caught.