ED conducts multiple raids in ₹658 cr-worth fake GST input tax credit case
Apart from the non existent Siddhi Vinayak Trade Merchants, the agency has come across 58 shell entities spread across different States
The Enforcement Directorate carried out multiple searches in West Bengal, Jharkhand and Manipur to unravel laundered money in the ₹658 crore worth fake GST input tax credit case that had origins in Arunachal Pradesh.
According to officials, searches of premises of entities involved in the fake GST input credit case took place in the three States .
The ED took over the case following an FIR lodged by the Anti-Evasion Wing, CGST Commissionerate, Itanagar, in Arunachal Pradesh alleging that a fictitious firm, Siddhi Vinayak Trade Merchants, generated fake invoices to the tune of over ₹658 crore leading to a loss of about ₹99 crore by way of fraudulent input tax credit.
The Input Tax Credit (ITC) is a legal instrument within the GST system that allows business entities to reduce their tax liability by claiming credits on GST paid for business-related purchases.
shell entities
Apart from the non existent Siddhi Vinayak Trade Merchants, the agency has come across 58 shell entities spread across different States which are under suspicion given that they might be used for siphoning of money.
The Siddhi Vinayak Trade Merchants carried GST registration acquired through alleged forged and bogus rent agreements, judicial seals, and Aadhaar and PAN papers.
It is alleged that Rakesh Sharma and Ashutosh Kumar Jha availed fraudulent ITC through fake invoices without any actual supply of goods or services.
Jha reportedly came into picture due to the death of Chartered Accountant Asish Jha, who was engaged by Faiz Ahmed, a Howrah-based businessman associated with M/s National Power. Ashutosh was an employee of Asish whose services were sought for GST and income-tax compliances.
As per news reports, nearly ₹41,664 crore in fake invoice cases was detected in the last financial year up to October 2025. Overall, 25,009 shell firms were engaged in ₹61,545 crore-worth fraudulent ITC scam in FY25-26.
Published on January 20, 2026
