Mining firm director arrested for GST fraud of Rs 53 cr in Nagaland

Dimapur, Jan 12 (PTI) The director of two mining firms was arrested in Nagaland for his alleged involvement in a GST fraud amounting to Rs 53.28 crore, officials said on Monday.

The arrest was made by the Anti-Evasion Unit of CGST Dimapur following an investigation into the fraudulent availment of input tax credit through the issuance and receipt of fake invoices without any actual supply of goods, they said.

The accused was identified as Atiqur Rahman Barbhuiya, director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, firms engaged in the supply of coal and coke, they added.

The scrutiny of GST returns revealed that the two companies had allegedly availed fraudulent input tax credit of Rs 27.52 crore and Rs 25.76 crore, totalling to Rs 53.28 crore, officials said.

Investigations found that the firms had issued invoices without movement of goods and failed to produce supporting documents such as e-way bills, transport records and bank statements.

Physical verification conducted by CGST officials revealed that both companies were either non-existent or non-operational at their registered places of business, raising serious concerns over the authenticity of their transactions.

Following the investigation, Barbhuiya was arrested on Saturday, under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which deal with the issuance of invoices without supply of goods and fraudulent availment of ITC. The offences are cognisable and non-bailable, officials said.

Further investigation is underway to identify other entities and individuals involved in the racket, they said. PTI CORR NBS NBS SOM