The directorate general of goods and services tax intelligence (DGGSTI) has unearthed a fraud worth Rs 1,000 crore in the state. The DGGSTI cracked the nexus of traders for raising fake GST invoices worth Rs 141 crore and indulging in tax evasion of Rs 21 crore. During investigation, the DGGSTI indicated a fraud worth over Rs 1000 crore by several traders and businessmen. GST intelligence department is keeping a close tab on the tax evaders
GST intelligence zonal unit Raipur found 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. According to a DGGI official,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.
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.
Similar action was earlier initiated against several dealers who have already accepted their fraudulent activity and are in the process of voluntarily depositing the GST amount defrauded by them. GST intelligence department is contemplating stern action against the dealers involved after the investigation.
