Shah Batteries Director Held For GST Fraud

The commercial taxes department arrested T.A. Aamir Hasan, director of Shah Batteries, for allegedly claiming fraudulent input tax credit (ITC) worth Rs.98.47 crore under the Goods and Services Tax (GST) regime.

The department said Hasan was found to have allegedly created and operated 17 bogus firms through his associates to illegally claim tax benefits. Officials said these firms passed on fake ITC to Shah Batteries and later voluntarily cancelled their GST registrations. Investigators found that the monthly GST returns of all 17 firms were filed from the same computer, indicating a coordinated effort to evade taxes and make unlawful profits.

The department stated that between April 2025 and April 2026, Shah Batteries reported a turnover of nearly Rs.571 crore, but paid only Rs.45.42 lakh as tax while using fraudulent ITC amounting to Rs.98.47 crore to discharge most of its liability. Officials said such activities caused significant losses to the government exchequer. They noted that Hasan had been given an opportunity over the past two months to rectify the matter and compensate for the revenue loss.

Commercial taxes officials arrested Hasan under provisions of the Telangana GST Act, 2017, after following due legal procedures. He was produced before a competent court and remanded to judicial custody. The department said strict action would continue against those involved in fake invoicing, bill trading and fraudulent ITC claims. Further investigation into the affairs of Shah Batteries is underway.

Source : https://www.deccanchronicle.com/southern-states/telangana/shah-batteries-director-held-for-gst-fraud-1964105