Bhubaneswar: Odisha’s GST Enforcement Wing has unearthed a Rs 323 crore GST fraud and arrested two masterminds including a charted accountant in the fake invoicing activities in the state, an official statement said.
The state GST Enforcement Wing Thursday arrested Amit Kumar Agrawal, a Chartered Accountant, Jharsuguda and Satindra Kumar Yadav, proprietor of S.S Syndicate, Bhubaneswar. The duo is considered as the masterminds involved in the creation and operation of 13 fictitious firms, a statement issued by the Commissionerate of Commercial Tax and GST, Cuttack said.
While Agrawal was arrested in Jharsuguda, Yadav was nabbed in Bhubaneswar, it said.
The two masterminds in collusion with others, have availed and passed on bogus input tax credit (ITC) worth Rs 323 crore by raising fake purchase and sale invoices to the tune of Rs 1,819 crore in the name of 13 fictitious/non-existent business entities. Taking advantage of simplification of GST newly introduced, the fraud has been committed by them, the statement said.
The investigation took its origin from interception of goods vehicle supported by documents issued in the name of non-existing and fake firms. “During investigation, it was found that the route of this tax fraud has spread to different states like West Bengal, Jharkhand, Chhattisgarh, Delhi. The State Enforcement Officers have moved to different states and conducted investigation taking the help of the jurisdictional officer of the concerned states,” it said.
This apart, the investigation revealed that the accused in this case have obtained identity documents like PAN, Aadhaar, bank passbook, voter ID, photograph from different persons especially staying in Kolkata, West Bengal fraudulently in the name of providing them job and have misutilized the documents for obtaining VAT and GST registration in their name.
Of the 13 fictitious firms, the proprietors of three firms are found to be jute mill worker/ sweeper in a jute mill located at Champdani, West Bengal, it said.
“The principal place of business of 10 fictitious firms have been shown on a barren land without any building or infrastructure at Bagdehi in Jharsuguda, two in another area like Beheramal, Jharsuguda and one in Sambalpur,” it said.
All house rent agreements/consent letters/genuineness certificates uploaded for registration under the VAT and GST Act are found to be forged, it said, adding that one particular photograph has been uploaded in three different names while obtaining three different GST registration under different proprietorship. A single person having the same father name has different PAN number, it said.
One mobile number has been shown as the mobile number of proprietors of three different firms having three different names and residential addresses. The residential addresses of proprietors of 10 fictitious firms are found to be forged. Only 4 mobile numbers have been mentioned as authorized mobile number in case of 13 fake firms having different proprietors, it said.
Investigation also revealed that registration/conversion in the case of 13 different fictitious firms have been done on the basis of documents provided by a single person without having authorization from the proprietor of the concerned firms. A portion of illegal money accrued from the fake business, was ultimately received by the masterminds through different channels and different routes, the statement said.
The masterminds have got fictitious firms registered under GST in the State of West Bengal, Jharkhand, Madhya Pradesh, Delhi in the name of the proprietor of the above firms whose registration certificate including those in Odisha have already been cancelled, it said.
The state GST Enforcement Wing has so far arrested 23 fraudsters for their involvement in issuance of fake invoices. The registration of as many as 29,002 dealers have been cancelled so far by the state GST officers on different ground after field enquiry.
PTI
