CGST arrests mining firm director in Nagaland for Rs 53.28 crore GST fraud

Guwahati: The Anti-Evasion wing of the Central GST (CGST), Dimapur, has arrested the director of two mining companies in Nagaland for allegedly orchestrating a Rs 53.28 crore GST fraud, officials said on January 12.

CGST officials arrested Atiqur Rahman Barbhuiya, director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, on January 10 after an investigation found large-scale fraudulent availment of input tax credit (ITC) through fake invoicing without any actual supply of goods.

Both firms are engaged in the trade of coal and coke. Scrutiny of GST returns showed that Bendangtoshi Mining allegedly claimed fraudulent ITC of Rs 27.52 crore, while Kevitho Mining claimed Rs 25.76 crore, taking the total alleged fraud to Rs 53.28 crore.

Investigators found that the companies issued invoices without any movement of goods and failed to furnish mandatory documents such as e-way bills, transport records and bank statements. Physical verification by CGST teams revealed that the firms were either non-existent or non-operational at their registered business addresses, officials said.

CGST arrested Barbhuiya under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which deal with issuing invoices without supply of goods and fraudulently availing ITC. The offences are cognisable and non-bailable.

Officials said the investigation is continuing to trace other individuals and entities linked to the alleged GST evasion network.