Fake GST Invoicing Case Leads to Arrest of Scrap Dealer in Jharkhand

A coordinated raid by the Directorate General of GST Intelligence resulted in the detention of Jamshedpur scrap trader Ajay Sharma, accused of masterminding a ₹100 crore fraudulent GST invoicing scheme. Sharma is said to have exploited non‑existent companies to extract illegal Input Tax Credit, operating within an extensive interstate fraud network. The operation, directed by joint director Abhim Kumar, saw officials sweep Baridih locations, seizing phones, laptops and a large cache of digital files.

The suspect reportedly used the aliases Ganesh Trading and Kanti Trading among others to fabricate paper trails that justified the false credit claims. Early investigations have mapped a web of counterfeit billing that boosted ITC claims by roughly ₹100 crore. The agency is now quantifying the fiscal damage and probing the involvement of other firms and individuals, some of whom are already serving sentences for related GST offenses.

The DG&GI has been tracking this alleged fake billing matrix across Jharkhand and neighboring states for several months. Ongoing forensic scrutiny of the confiscated data aims to uncover additional conspirators and fully dismantle the network.