Odisha: Input Tax Credit fraud worth over Rs 311 cr unearthed; 5 held

Cuttack: On charges of evading input tax credit (ITC) worth Rs 311.03 crore, officials of the State GST Enforcement wing of the Commercial Tax and GST Commissionerate, Odisha today arrested five persons. The accused misappropriated the input tax credit with the help of fake way bill worth Rs 1,717.91 crore.

Official sources said following raids and analyzing the data the tax officials unearthed 24 ghost companies that have been causing revenue loss to the State exchequer through fake bills and fake input tax credit.

With the help of police personnel, 12 teams comprising 48 tax officials arrested the five persons for their alleged involvement in the input tax fraud. The accused have been Dhanwan Sa, Ram Bhorese Sa, Manoj Kumar Pandey, Subas Kandulana and Niku Singh alias Chhatar Singh.

Dhanwan Sa, Ram Bhorese Sa and Manoj Kumar Pandey are the existing and former directors of Mesars Swastik Ingot (Pvt) Limited, Mesars Sunayana Metal Industries Limited and Mesars Sairam Ingot (Pvt) Limited.

The two other accused are Subas Kandulana, proprietor of Mesars Subas Traders located at Pamara village under Badagaon police limits of Sundargarh district and associate Niku Singh.

Official sources added the accused also created 23 bogus companies to help others evade input tax credit. The transaction of goods was never carried out and the accused was showing the business of their companies on records only and evading the input tax credit.

Under the section 132 (1)9(b)(c) and 132(5) the offence is a non-bailable one.