GST fraud worth Rs 323 crore unearthed in Odisha, 2 arrested

Odisha’s Goods and Services Tax (GST) enforcement wing has arrested two people in connection with a fraud. The racket involved fake invoicing of Rs 1,819 crore to claim input tax credit (ITC) worth Rs 323 crore.

Commercial Taxes and GST Commissioner Sushil Kumar Lohani told India Today TV that the department has arrested a chartered accountant and his associate Satindra Kumar Yadav for allegedly creating and operating 13 fictitious firms.

“The two availed and passed 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 or non-existent business entities,” Lohani said.

The actual loss to the Odisha government is Rs 58.14 crore as the ITC was passed on to recipients outside the state. “The duo committed the fraud by taking advantage of the newly-introduced simplification of GST,” added Lohani.

The fraudulent activity impacted many states including West Bengal, Jharkhand, Chhattisgarh and Delhi. Officers went to different states and conducted investigations, taking the help of the jurisdictional officers concerned.

The addresses of 10 fictitious firms were traced to wastelands without any building or infrastructure at Bagdehi in Jharsuguda, two other places in Beheramal in Jharsuguda, and one in Sambalpur.

Source- https://www.indiatoday.in/business/story/massive-gst-racket-unearthed-odisha-two-arrested-for-fake-invoicing-input-tax-credit-1848852-2021-09-03