GST evasion worth crores unearthed in Telangana
HYDERABAD: The Telangana commercial taxes department has uncovered large scale Goods and Services Tax (GST) evasion running into crores. Officials said an inquiry into the input tax credit (ITC) claims of a Hyderabad based construction company revealed tax evasion between ₹10 crore and ₹15 crore.
The department is now preparing to register a formal case and make an official announcement after collecting more details.
789 bogus firms traced across Telangana
Between April and October of the current financial year (2025–26), the department identified 789 fake companies allegedly used to generate bogus ITC claims worth over ₹70 crore. Reliable sources said traders had used these shell firms to divert GST funds.
Recently, the Enforcement Directorate (ED) found ₹110 crore worth of fraudulent ITC claims linked to a Hyderabad-based firm during a money-laundering probe in Itanagar, Arunachal Pradesh.
National tax evasion crosses ₹15,000 crore
At the national level, inspections between April and June 2025 revealed 3,558 bogus companies claiming ITC worth ₹15,851 crore. A senior official told that the average bogus ITC claim per company rose from ₹3.2 crore last year to ₹4.45 crore this year. During 2024–25, total ITC-related evasion was estimated at ₹61,545 crore, of which Telangana accounted for over ₹100 crore.
State intensifies checks to plug revenue loss
Following the recent GST slab changes, the state government had informed the Centre in September that its revenue might drop by nearly ₹7,000 crore this year. To offset the shortfall, it directed the commercial taxes department to intensify checks on tax evasion and fake ITCs.
Officials said they were scrutinising the transactions of several Hyderabad-based companies and business entities. The department is personally inspecting records wherever discrepancies are suspected.
“Curbing bogus ITCs could bring the state an additional ₹1,000 crore in revenue,” a senior official said.
