GST Fraud of Crores Exposed: Over 170 Bogus Firms Created for Tax Evasion

₹1.64 Crore Cash and 400 Grams of Gold Seized During Probe

Raipur, Sept 2025 : The State GST Department, using GST Analytics and Intelligence Network and the GST Prime Portal, has unearthed a syndicate involved in creating bogus firms and fake invoices. The mastermind behind the scam is Mohd. Farhan Sorathiya, who worked as a GST tax consultant. Due to this syndicate, the state was losing crores of rupees in tax revenue every month.

The BIU team of the State GST had been investigating the case for a month. On September 12, an inspection was carried out at the office of mastermind Farhan Sorathiya. During the probe, information about 172 bogus firms was uncovered. Farhan had employed five office staff members to handle firm registration, return filing, and e-way bill preparation. Evidence was also found showing preparation of fake documents like rent agreements, consent letters, and affidavits for bogus registrations.

From just 26 such bogus firms, e-way bills worth ₹822 crore were generated, while returns showed only ₹106 crore turnover. Preliminary assessment suggests a GST loss of around ₹100 crore to the state exchequer from these firms alone. Documents also revealed registrations not only within the state but also in Punjab, Assam, Manipur, and Odisha, based on fabricated documents. Through these firms, fake supply bills and e-way bills were being issued.

Following information that Farhan had hidden documents related to these bogus firms, the department conducted a search on September 17 at the residence of his uncle, Mohd. Abdul Latif Sorathiya. Officials recovered ₹1.64 crore in cash and four gold biscuits weighing 400 grams. The seized assets were handed over to the Income Tax Department.

GST officials are currently calculating the total fraud amount running into crores. Several brokers, scrap dealers, and companies that availed input tax credit are also under investigation. The State Tax Department is conducting a detailed probe, and further legal proceedings are underway.