The Enforcement Squad of Goods and Services Tax (GST) has arrested three persons for allegedly cheating government to tune of crores of rupees by making multiple business transactions with fake GST invoice at Choudwar area in the district on Monday night.
The accused identified as Smruti Mohanty, Soumya Mohanty and Rajiv Mishra have been produced before the Cuttack Judicial Magistrate (Fast Track) on late last night, officials said.
The accused had registered a firm with fictitious address by using the documents of another individual and had issued tax invoices to various business entities, without transacting any business or supplying any goods or services for a commission to facilitate claim of GST credit.
“One of our teams was investigating into an allegation against one Nayak Enterprises in Choudwar area. The firm has been registered in the name of one Sangram Keshari Nayak. These three accused registered the firm by using documents of Nayak in a fraudulent means. They used to do business transactions only on paper. There was no transaction of goods,” said Deepak Ranjan Behera, Joint Commissioner, GST.
They obtained the GST registration fraudulently by using the documents of Nayak, he said. No such company or goods were found in their business transaction what they showed to the government, Behera maintained.
During the raid, the accused failed to present valid documents before the officials. The squad has also launched further investigation to unearth involvement of others in the fraud. The exact amount of the fraud is being calculated, the official said.