GST fraud to the tune of whopping Rs 1,000 cr committed in C’garh

GST fraud to the tune of whopping Rs 1,000 cr committed in C’garh

February 18, 2019 0 By Rajesh Agrawal

Baffling are revelations, if the enforcers of Directorate General of Goods & Service Tax Intelligence (DGGI), Raipur Zonal Unit, are to be believed. 
The DGGI sleuths during the course of their extended investigations into multi-crore /GST evasion fraud committed by Raipur-based trading firm M/s Shree Shyam Sales Corporation, unearthed on January 16, on Sunday claimed that over Rs 1,000 crore worth fraud has been committed by many traders and businessmen in Chhattisgarh state on which the GST intelligence department is keeping a close watch wherein punitive action is being contemplated against all found to be involved in the fraud.


It is pertinent here to recall that a team of DGGI enforcers the other day arrested Santosh Agrawal and Ayush Garg, as identified as residents of Samta Colony and two equal partners of the aforesaid trading firm. The duo committed the fraud by faking invoices issued by non existent firms valued at Rs 141 crore to claim ineligible Input Tax Credit (ITC) of over Rs 21 crore.


Tallking to ‘The Hitavada’, DGGI Joint Director Nem Singh averred that over 100 dealers of the state have been found to have further purchased such bogus bills from M/s Shree Shyam Sales Corporation and thereby they would fall within the category of accomplice in the ongoing fraud. Stern action on non payment of GST can be expected against these fraudsters. “This type of evasion where the GST amount is more than 5 Cr is an offence which is non-bailable. The provisions of Section 132 (1) (iv) of the CGST Act has provisions of arrest and six months imprisonment to accomplices of such frauds,” he added.


Singh also informed that the hearing of the two accused is slated for Monday, after a local court had sent them to Raipur Central Jail under Judicial Remand Custody, here other day. “Similar action has been already initiated against several dealers of Raipur by GST intelligence department in the near past like M/s Shree Kapishwar Steels, M/s Shree Hanuman Steels, M/s Shree Refractory, M/s Ojaswi Corporation etc. The dealers have already accepted their fraudulent activity and are in the process of voluntarily depositing the fraudulently availed GST by them,” said the DGGI Joint Director in response to a query.


Under the watchful eyes of DGGI Principal Additional Director General Navneet Goel, the crack team, which unearthed the fraud comprised of Senior Intelligence Officers (SIO) K K Ghosh, Thomas Xavier along with Intelligence Officers (IOs) Puneet Mishra, Harpreet Singh, Manas Dixit, Brajesh Kumar, Sunil Kumar, R M Thakur and Aparna Bajpai.