OD-GST-FRAUD

Two persons arrested for GST fraud of Rs 212 crore in Odisha
    Bhubaneswar, Jan 23 (PTI) Odishas GST Enforcement
Authorities on Thursday arrested two persons for their alleged
involvement in GST fraud of Rs 212 crore, officials said.
    GST Commissioner Sushil Kumar Lohani said two persons
identified as Amit Beriwal, and Subash Chandra Swain,
proprietor of two companies in Rourkela, were arrested on the
basis of prima facie on their alleged involvement.
    He said physical inspection and search of 27 business
establishment recently followed by intensive data analysis, it
was found that the duo fraudulently availed Rs 89 crore of
bogus input tax credit and passing of input tax credit of Rs
123 crore on the strength of fake invoices.
    They were arrested under various sections of Odisha
GST Act, 2017.
    Lohani said as per information available so far,
Beriwal along with Swain and others have created as many as 28
fictitious and dummy firms in the name of persons belonging to
basically poorer section of the society like daily wage
labourers, private tutor, unemployed youths, housewives.
    The duo, considered as the mastermind also in the name
of giving gainful employment, obtained identity documents from
the poor people and took GST registration and shown purchase
of iron and steel goods worth Rs 493 crore and sale of Rs 687
crore in their names without payment of tax and passed on
bogus input tax credit worth Rs 123 crore to recipients
located both inside and outside the state of Odisha, the
official said.
    In their bid to legalize the fake transactions and
hoodwink the department, the duo opened bank accounts and
operated in the name of these dummy firms. Huge amount of cash
transactions have been made through these accounts which are
under investigation, he said.
    Meanwhile, investigation has revealed that many of the
dummy firms are non-existent and not operating from their
registered place of business. Proprietors of these fake firms
have admitted that they are neither doing any business nor
effecting any purchases/sales in the name of their firms and
the transactions reflected in their returns are paper
transactions without actual receipt and supply of goods.
    Lohani said the GST fraud involves revenue loss
amounting to Rs 123 crore. The Commissionerate is taking steps
to recover the bogus input tax credit availed by the
recipients of Odisha with interest and penalty, he said. PTI
AAM
RG RG

(This story has not been edited by THE WEEK and is auto-generated from PTI)