Enforcement Wing cracks fake GST invoicing worth Rs.641 cr, two arrested

Bhubaneswar: The State GST Enforcement Wing on Friday nabbed two masterminds for their alleged involvement in availing and passing of bogus input tax credit (ITC) worth Rs.115.10 crore on the strength of fake invoices to the tune of Rs.641 crore.

 The accused have been identified as Gurdit Dang, Managing partner of Tirupati Traders and authorized representative of Satguru Metals & Power Pvt. Ltd., Rourkela and Sujay Maitra, Director of Smartageis Trade Venture Private Limited of Rourkela.

While Dang has been arrested in Rourkela, Maitra has been arrested in Bhubaneswar. 

The masterminds in collusion with others, have availed bogus input tax credit (ITC) raising fake purchase invoices in the name of 16 fictitious /non-existent business entities located at Angul,  Rourkela, Banai, Ersama, Tirtol, Riamal and Sundargarh. 

The present investigation took its origin from an investigation made on a complaint petition filed by one existent dealer of Jogeswarpur, Balasore regarding supply of goods by the accused on the strength of fake invoices followed by admission during interrogation made to five existing dealer of Panikoili, Baripada, Rasgovindpur, Bargarh, Puri and Balasore.

The investigation got further strength from the evidences collected during mobile activities and revelation made by the driver / transporter carrying goods regarding the real dispatcher of goods contrary to the documents produced during interception of the goods vehicle.

The State GST Enforcement Wing has so far arrested 20 fraudsters for their involvement in issuance of fake invoices.

Registrations of 25400 dealers have been cancelled so far by the state GST officers on the ground of their non-existence after field enquiry or due to non filing of returns.

To eliminate bogus registration, the registration process has been streamlined. Moreover, a two month long special drive starting from 16th July 2021 to 15th September 2021 has been launched to weed out all non-existing registrants.

The Commissioner of State GST appealed to general public that they should not share their identity documents, personal details, bank details etc. with any unauthorized persons.

Also, they should not permit any unauthorized person to operate a business or bank account on their behalf or in their name. In case, it comes to their notice that their credentials and other personal documents are being misutilised by someone for running a business the same should immediately be intimated to the nearest GST office.