Dimapur: The Anti-Evasion Unit of the Central GST Commissionerate, Dimapur, has arrested a mining company director in connection with an alleged GST fraud involving more than Rs 53 crore, said an official statement.
The accused, Atiqur Rahman Barbhuiya, is a director of two firms — M/s Bendangtoshi Mining Pvt Ltd and M/s Kevitho Mining Pvt Ltd — which are engaged in the supply of coal and coke.
According to the GST department, the companies were found to have issued and received invoices without any actual movement of goods.
In this regard, a departmental statement said that inspections at the registered premises of the two firms revealed that they were either non-existent or not operational.
Further scrutiny of GST returns showed that fake invoices had been used to fraudulently pass on and avail Input Tax Credit (ITC) of Rs 27.52 crore and Rs 25.76 crore, respectively.
As per the department, Barbhuiya failed to provide supporting documents such as e-way bills, transport records and relevant bank statements linked to the invoices, strengthening the case against him.
Based on the findings, he was booked under provisions of the CGST Act, 2017 related to issuing invoices without the supply of goods and fraudulently availing ITC. He was arrested on January 10 and produced before a competent court in Dimapur.
The GST department said this is the second major arrest by the Dimapur Commissionerate in recent months in cases of fake invoicing.
In December last year, two GST-registered traders were arrested after their firms were found to be non-existent and involved in tax evasion running into several crores.
Further investigation into the current case is underway.