A major GST fraud has been uncovered in Lakhimpur district, where fake businesses were used to embezzle crores of rupees from the GST system. The scam came to light following a recent investigation by the State GST department in North Lakhimpur. Manoj Kumar Duwari, the Superintendent of GST, found suspicious activities when he checked the State GST data.
Two businesses, Adi Enterprise and PS Enterprise, which were registered with Central GST, were discovered to have been preparing fake GST invoices and issuing them online to other businesses. This fraudulent activity has led to an embezzlement of Rs 400 crore.
The scam involved creating fake invoices for transactions that never took place. The suspicious trade routes, such as a firm in Assam purchasing timber from Rajasthan and selling it in Kerala, raised red flags for investigators. Additionally, the non-matching truck movements through toll gates in these states confirmed the need for a deeper investigation.
The two firms had been using fake Input Tax Credits (IPCs) to avoid paying GST by issuing fraudulent invoices to businesses. These fake transactions allowed them to evade large tax payments while generating profits from selling the fake invoices to other GST returnees.
Upon realizing the scale of the scam, Manoj Kumar Duwari reported the incident to the Central GST Commissioner in Tezpur, prompting further investigation by the GST Intelligence Directorate (ID). The GST ID has since arrested the owners of the fraudulent businesses, Aniket Swacharia and Pritam Swacharia, for their role in the crime.
The investigation continues as authorities work to identify other businesses involved in the scam and recover the embezzled funds.
