The Central Goods and Services Tax Commissionerate, Dimapur arrested a mining firm director for allegedly issuing fake invoices and availing INR 53 crore in input tax credit fraud.
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DIMAPUR — The Central Goods and Services Tax (CGST) Commissionerate, Dimapur, has arrested a director of two mining firms for allegedly issuing fake invoices and fraudulently availing input tax credit (ITC) amounting to over INR 53 crore.
According to a press note issued by the Office of the Commissioner of Central Goods and Services Tax on Sunday, the arrest followed an investigation carried out by the Anti-Evasion Unit of CGST Dimapur. The accused, Atiqur Rahman Barbhuiya, is reportedly a director of M/s Bendangtoshi Mining Pvt Ltd and M/s Kevitho Mining Pvt Ltd, firms engaged in the supply of coal and coke.
The investigation found that the two companies had allegedly issued and received invoices without any actual supply or receipt of goods. During inspection, the firms were found to be non-existent or non-operational at their declared business premises, the department said.
Scrutiny of GST returns reportedly revealed that fake invoices were used without any movement of goods, resulting in fraudulent passing on and availing of ITC amounting to INR 27.52 crore in one firm and INR 25.76 crore in the other. The department said the taxpayer failed to produce supporting documents such as e-way bills, transport documents, or bank statements corresponding to the invoices issued and received.
Also read: Two arrested in Dimapur for issuing fake GST invoices amounting to over INR 11 crore
Based on the findings, Barbhuiya was found to have committed offences under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which relate to issuing invoices without supply of goods or services and fraudulently availing input tax credit. The offences are cognisable and non-bailable under the Act.
He was arrested on January 10 in Dimapur and produced before the competent court, the press note stated.
The department said this is the second case in recent months in which CGST Dimapur has arrested individuals for tax fraud and offences under the GST Act. Further investigation is under progress.