Faridabad Teenager Uses Fake iPhone Invoices, Shell Firms to Execute ₹64-Crore GST Scam

A 19-year-old from Faridabad has been arrested for orchestrating a sophisticated ₹64 crore GST fraud using fake iPhone invoices and 42 shell companies. The accused created an elaborate network showing circular trading of mobile phones to fraudulently claim input tax credits over 18 months. Investigations revealed the scam used identity theft to register companies and generate authentic-looking e-way bills. The GSTN's fraud analytics system eventually flagged impossible supply patterns and excessive ITC claims. Authorities have frozen 18 bank accounts and identified ₹12 crore in assets for recovery. This case exposes vulnerabilities in GST registration processes and the growing threat of tech-savvy financial crimes. The DGGI has formed a special investigation team, suspecting professional accomplices may be involved. Experts urge implementation of AI-based fraud detection and mandatory Aadhaar authentication for new registrations. The ministry plans stricter KYC norms and real-time validation of high-value invoices. This incident follows several similar GST fraud cases, prompting calls for systemic reforms to prevent exploitation of tax credit mechanisms.