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.