GST Fraud Racket busted in Odisha
The State Commercial Tax and GST Commissionerate busted an intra and inter-state GST fraud racket with the arrest of its kingpin and a prime suspect from Rourkela.
The accused, Amit Beriwal, proprietor of M/S GS Unitrade at Civil Township and Subas Chandra Swain, proprietor of M/S BB Associates at Basanti Colony, were involved in fraudulently availing Rs 89 crore of bogus input tax credit (ITC) and passing input tax credit of Rs 123 crore with fake invoices.
Amit and Subas had created as many as 28 fictitious and dummy firms in the names of daily wage labourers, private tutors, crane operators, unemployed youths and housewives.
On the pretext of providing employment, the accused had obtained documents, including identity details, from these people for GST registration, showed purchase of iron and steel goods worth Rs 493 crore and sale of Rs 687 crore in their names without paying tax.
They even passed bogus ITC worth Rs 123 crore to recipients from the State and outside. In order to legalise the fake transactions and hoodwink the department, bank accounts were also opened and operated in the names of these dummy firms.