Cuttack: Tax authorities in Odisha on Friday claimed to have unearthed a Rs 138-crore GST fraud, and arrested at least four persons for being part of a racket that created fictitious firms and fake invoices.

Investigations revealed that between August 2018 and September 2019, the fictitious firms used fake invoices and made purchases of over Rs 603 crore and sale of Rs 743 crore without paying taxes, but availed input tax credit, Goods and Services Tax (GST) Commissioner Sushil Kumar Lohani said. He said as many as 20 fictitious firms in the names of housewives, taxi drivers, daily wage earners, plumbers and unemployed youths were created by the racketeers. "At least four persons have been arrested in this connection under different sections of the OGST Act, 2017," Lohani said.