A firm claiming to trade in toys and video games came under the radar for operating a fake GST input tax credit (ITC) racket worth ₹6.25 crore, according to a statement issued by the Telangana Commercial Taxes Department.
The firm, M/s Bala Corporation, was found to have fraudulently obtained its GST registration by submitting fabricated electricity bills for a non-existent address in the Somajiguda-1 circle of Khairatabad, under the Punjagutta division.
Investigation revealed that though the firm was registered for trading toys and video games, it generated 1,268 e-waybills between March and April 2025 for entirely unrelated commodities including cement, copper pipes, and plywood. Officials said no actual goods were received or supplied.
The proprietor, Nasari Vinod Kumar, is accused of violating key provisions under Sections 16(2) and 122 of the CGST/TGST Act, 2017. The firm allegedly claimed ₹6.25 crore in fake Integrated GST (IGST) input credit and further passed on ₹6.25 crore in fake Central and State GST credits to 32 other taxpayers across various jurisdictions.
Following a site inspection conducted by ACTO Nagi Reddy, the GST registration of the firm was cancelled with retrospective effect from 25 February 2025. Letters have also been issued to the jurisdictional officers concerned for initiating recovery proceedings against the 32 recipient entities that benefited from the bogus ITC.
A First Information Report (FIR) has been registered at the Hyderabad Central Crime Station (CCS) and an investigation is now in progress.
Published – July 17, 2025 07:39 pm IST
