The directorate general of goods and services tax intelligence (DGGSTI) has unearthed a fraud worth a whopping Rs 1,000 crore in the state. The DGGSTI cracked the nexus of traders, who were arrested on Sunday for raising fake GST invoices worth Rs 141 crore and indulging in tax evasion of Rs 21 crore. During further investigation, the DGGSTI indicated a fraud worth over Rs 1000 crore by several traders and businessmen. The GST sleuths said that such traders are on their radar and the GST intelligence department is keeping a close tab on the tax evaders.
According to DGGI officials, GST intelligence zonal unit Raipur got a whiff of the fraud when they found on Sunday that fake invoices worth Rs 141 crore had been issued by non-existent firms which were used by a local dealer of iron and steel products to claim ineligible input tax credit of GST worth Rs 21 crore. “The fraud was committed by M/s Shree Shyam Sales Corporation run by Santosh Agrawal and Ayush Garg. Both were arrested and sent to judicial custody by the court,” said senior DGGI official. According to the law, any evasion in the GST amount over Rs 5 crore is a non-bailable offence. The provisions of section 132(1)(iv) of the CGST Act has provisions of arrest and six-month imprisonment to such fraudsters.
Over 100 dealers of the state have been found to have done bogus transaction with M/s Shree Shyam Sales Corporation, and hence they are likely to face stern action for non payment of GST. Similar action was earlier initiated against several dealers like Shree Kapishwar Steels, Shree Hanuman steels, Shree refractory, Ojaswi corporation etc by the GST intelligence department. The dealers have already accepted their fraudulent activity and are in the process of voluntarily depositing the GST amount defrauded by them. Going by estimates, over Rs 1000 crore fraud has been committed by dealers in the state and the GST intelligence department is contemplating stern action against them after the investigation, officials confirmed.