AI-Manipulated Documents Used in ₹941 Crore Fake Business; Fraud Linking Shimla, Solan to Telangana, Rajasthan, Karnataka, GST Wing Issues Warning
Parwanoo – The South Zone GST Wing, Parwanoo, has uncovered a massive fake business network worth ₹941.39 crore, revealing a sophisticated interstate fraud in which 90 percent of Himachal Pradesh’s reported sales were routed to Telangana, Rajasthan and Karnataka. The operation prevented a GST scam of nearly ₹170 crore.
Joint Commissioner GD Thakur stated that the investigation revealed the use of AI-manipulated documents to obtain faceless GSTIN registrations. Fraudulent taxpayers used forged electricity bills, Aadhaar cards, PAN cards, lease agreements, consent letters and mobile numbers—many of which were digitally altered using AI tools.
A disturbing finding was the misuse of e-stamp papers, which are normally used by teachers, doctors, and government employees for legitimate purposes, such as lease agreements. Officials found that fake firms had taken genuine e-stamps and altered them through AI to falsely show commercial premises for their operations.
Investigators also discovered that the landlords whose addresses were used had no knowledge of the crores of rupees shown as business activity from their properties over the last six months. Equally alarming was the use of Aadhaar cards and mobile numbers belonging to sanitation workers, gardeners and domestic helpers, who were completely unaware their identities were being used to run fake businesses.
So far, nine fraudulent taxpayers have been identified—five from Shimla, three from Solan, and one from Una. However, the actual business operations were being controlled from southern states, with bank accounts there used to divert and conceal transactions.
Officials said the fraud attempted to exploit GST systems by routing high-value sales outside Himachal Pradesh to avoid tax liability. The GST Wing has issued a warning about the growing misuse of AI tools for document tampering and said more arrests and actions may follow as the investigation expands.
