BHUBANESWAR: A GST fraud of over four crore rupees has come to light with two agro-based firms availing the amount from the Government as Input Tax Credit (ITC).
The agricultural implement manufacturing units submitted fake invoices without actual supply and receipt of goods.
The firms Annapurna Agro International Pvt Ltd and its sister company Subhamjyoti Agro Pvt Ltd availed ITC of Rs 3.29 crore on purchase of input worth Rs 18.31 crore and Rs 73 lakh on purchase of input worth Rs 4.03 crore respectively from six non-existent firms.
On the basis of intelligence inputs, the enforcement wing of Commissionerate of Central Tax and GST had inquired into business activities of a few companies, of which these six firms registered for supply of iron and steel goods were found to be non-existent.
The two firms showed fake purchase of raw materials like iron and steel worth Rs 22.33 crore without receipts and availed the ITC.
The two companies have made a total sale of Rs 209.56 crore between July 2017 and March 2019.
A GST official said premises of the units were raided recently and incriminating document were seized.
“The credibility of other purchases and supplies of the two firms is under investigation. Subhamjyoti Agro has, however, admitted to fraudulent practice and paid Rs 59 lakh as part payment of tax and penalty,” he said adding that though manufacturing and supply of goods are directly linked to physical procurement and utilisation of raw materials, the invoices were raised without actual supply or receipt of goods.
The enforcement wing also found 21 dealers from Koraput, Balangir, Jajpur, Berhampur, Balasore, Rourkela, Baripada, Barbil, Angul, Samblapur, Cuttack, Bargarh and Jharsuguda who had shown their purchase from the two companies. They are, however, suspected to be part of the nexus.
“As supply of agricultural implements is linked to subsidy, the possibility of availing subsidy on the basis of forged invoices cannot be ruled out,” the officer pointed out. Meanwhile, the Commissionerate of Central Tax and GST has asked the Agriculture department to inquire into the suspected transaction of agricultural implements by the two firms.
Agriculture Secretary Saurabh Garg, however, said GST fraud has no link with the department.
“We used to ensure receipt of agricultural implements by the beneficiaries prior to and on disbursement of subsidy. However, we would look into the matter,” he assured.