Fake invoicing racket busted in Assam, 2 arrested

The Directorate General of GST Intelligence (DGGI), Guwahati Zonal Unit, has busted Rs 338 crore racket involving fake invoicing. At least two persons have also been arrested in connection with the case.

Guwahati: Digging deep into a major scam, the Directorate General of GST Intelligence (DGGI) of the central government have arrested two persons from Assam's Guwahati for their alleged involvement in a financial scam worth Rs 338 crores. According to sources, businessman Amit Kumar and Tax Consultant Sourav Bajoria have been arrested for violations of different provisions of the GST Act and produced before the CJM who remanded them to 14 days of Judicial Custody recently.

DGGI officials said that the scam involves Rs 338 crores racket of fake invoicing in which fake credit of Input tax (TTC) involving Rs 28.97 crores of GST was taken. He said that M/s. Maruti Traders, owned by Amit Kumar was found to be engaged in receipt and issuance of fake invoices of coal.

"The firm showed the purchase of coal from Gujarat, Punjab and Delhi to his Guwahati unit to avail Input Tax credit. The unit subsequently issued invoices to cement manufacturers, coal manufacturers, and other traders etc in North East without the supply of any goods," a senior DGGI official said adding that the fake invoices/bills of coal issued by M/s. Maruti Traders, (18AKGPK76760124) were used as a cover document for the coal procured clandestinely and to pass on irregular ITC.

"The proprietor Amit Kumar created two more fake entities by the same name Maruti Traders at Ludhiana and Gandhidham and showed business transactions between these firms on paper without any supply of goods. This huge racket of fake invoicing involved other firms in Delhi, Punjab and Gujarat which were found to be non-existing," he said.

"Tax Consultant Sourav Bajoria, Proprietor of M/s Bajoria Associates Guwahati, colluded with Amit Kumar and caused the commission of the fraud. He was instrumental in dealing with transactions for Amit Kumar. Sourav Bajoria maintained the accounts/books of accounts, prepared the Financial Accounts and got the account audited and filed the GSTR-1 and GSTR-3B returns pertaining to M/s Maruti Traders of Guwahati, Gujarat and Ludhiana which turned out to be non-existent entities during the search," he said.