Dimapur, January 11 (MExN): One person has been arrested by the Central Goods & Services Tax (CGST) Office, Dimapur, on January 10 for allegedly issuing fake invoices and availing fraudulent Input Tax Credit (ITC).
A press release from CGST Dimapur informed that the person, identified as Atiqur Rahman Barbhuiya, was found to have committed offences under Section 132(1)(b) (issuing invoice or bill without supply of goods or services) and Section 132(1)(c) (fraudulently availing Input Tax Credit) of the CGST Act, 2017.
Both offences are cognisable and non-bailable.
The arrest was made during an investigation conducted by the Anti-Evasion Unit of the Central GST Commissionerate, Dimapur.
The release stated that Barbhuiya, a director of two companies namely, M/s Bendangtoshi Mining Pvt Ltd and M/s Kevitho Mining Pvt Ltd, dealing in the supply of coal and coke, was found to be issuing and receiving invoices without actual supply or receipt of goods.
However, the firms were found to be non-existent or non-operational at the declared premises at the time of inspection, it mainitained.
Further, scrutiny of GST returns revealed the issuance and receipt of fake invoices without actual movement of goods, resulting in fraudulent passing on and availing of ITC amounting to Rs 27.52 crore and Rs 25.76 crore, respectively, it added.
The taxpayer, the release informed, failed to produce documents related to the transactions, including e-way bills, transport documents and bank statements corresponding to the invoices issued and received.
Accordingly, he was arrested and produced before the Court, while further investigation is underway.
This is the second case in recent months in which CGST Dimapur has arrested individuals involved in tax fraud and offences under the GST Act, it added.
