BHUBANESWAR: In one of the biggest GST frauds detected in Odisha in recent times, the enforcement wing on Thursday, September 2, 2021, busted a racket involved in fake invoicing of Rs 1,819 crore and arrested two persons.
The racket had availed bogus input tax credit (ITC) of Rs 323 crore by raising fake purchase and sale invoices in the names of 13 fictitious firms incurring a loss of Rs 58.14 crore to the State exchequer. Masterminds behind the racket Chartered Accountant Amit Kumar Agrawal and proprietor of SS Syndicate Satindra Kumar Yadav have been arrested.
Commissioner of CT and GST Sushil Kumar Lohani said the duo in collusion with others has availed and passed on bogus ITC to the recipients outside the State. Taking advantage of simplification of GST, the fraud has been committed by the culprits, he said.
Since the tax fraud has spread over different states including West Bengal, Jharkhand, Chhattisgarh and Delhi, the enforcement officers have moved to different places and conducted investigations taking the help of the jurisdictional officers.
Of the 13 fictitious firms, the proprietors of three companies are found to be jute mill workers and sweepers in Dalhousie Jute Mill located at Champdani in West Bengal. The places of business of 10 other fictitious firms were shown on a barren land at Bagdehi and Beheramal in Jharsuguda and Sambalpur. All house rent agreements, consent letters and genuineness certificates uploaded for registration under the VAT and GST Act are found to be forged.
“One photograph has been uploaded in three different names while obtaining three different GST registrations under different proprietorship. A person having the same father name has different PAN numbers and four mobile phone numbers have been mentioned as authorised contact numbers of all 13 firms,” Lohani said. The enforcement wing has so far arrested 23 fraudsters for their involvement in issuance of fake invoices.