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GST Fraud Of Rs 123 Crore In Odisha, 2 Arrested


23 January 2020

Bikash Sharma


Cuttack: Odisha State GST enforcement authorities today arrested two persons for their involvement in fraudulently availing Rs 89 crore bogus input tax credit and passing input tax credit of Rs 123 crore on the strength of fake invoices. They have been identified as Amit Beniwal, proprietor of GS Unitrade, Civil Township, Rourkela and Subash Chandra Swain, proprietor of BB Associates of Basanti Colony, Rourkela.

Investigation revealed that Beniwal along with Swain and others created 28 fictitious and dummy firms in the name of persons belonging to daily wage labourers, private tutors and unemployed youths. They showed purchase of iron and steel goods worth Rs 493 crore and sale of Rs 687 crore in their names, bypassing taxes and passed on bogus ITC worth Rs 123 crore. To legalize this, they opened and operated bank accounts in the names of these dummy firms.

During the course of investigation, many of the dummy firms were found to be functionally 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.

"All of them have also categorically admitted that they have neither deposited nor withdrawn any amount from the bank account opened in the name of their firm. The GST scam involves revenue loss to of Rs 123 crore. The Commissionerate is taking steps to recover the bogus ITC availed by recipients of Odisha with interest and penalty," GST Commissioner Sushil Kumar Lohani said.

sushil Kumar Lohani, GST Commissioner, Odisha