In a significant breakthrough against tax fraud, the Central GST Itanagar Commissionerate has uncovered a massive Rs 658.55 crore Goods and Services Tax (GST) scam involving fraudulent invoices. The scheme, allegedly orchestrated by a firm registered in Arunachal Pradesh, has caused an estimated loss of Rs 99.30 crore to the government exchequer.
The fraudulent operations were carried out by M/s Siddhi Vinayak Trade Merchants, which illegally transferred Input Tax Credit (ITC) to 58 firms across the country using fake invoices. Investigations revealed that the firm was set up using forged documents to generate invoices without actual transactions, thus unlawfully availing ITC.
During a search operation in Kolkata, authorities seized seven mobile phones, an iPad, 53 PAN/Aadhaar cards belonging to various individuals, and 17 rent agreements linked to the fraudulent activities. Multiple KYC documents of fictitious identities were also discovered, pointing to the large-scale, organized nature of the scam. The accused were managing and filing bogus GST returns from the searched location.
Following these findings, the Central GST Department filed an FIR with Itanagar Police, leading to the arrest of two key masterminds: Ashutosh Kumar Jha and Bipin Kumar Jha from Darbhanga, Bihar. The duo was arrested on February 3, 2025, under Section 69 of the CGST Act, 2017. The authorities have praised the coordinated efforts between the GST enforcement teams and Itanagar Police in dismantling the fraudulent network.
The Ministry of Finance has reiterated its commitment to eliminating GST fraud and ensuring strict compliance across the nation. This crackdown aligns with the broader national initiative by the Central Board of Indirect Taxes and Customs (CBIC) to identify and dismantle fake GST registrations and fraudulent invoicing networks. As regulatory measures intensify, businesses engaging in such illegal practices face severe legal consequences.
