By Bizodisha Bureau, Bhubaneswar, January 23, 2020: Good and Service Tax (GST) officials on Thursday unearthed a Rs 123-crore GST fraud at Rourkela and arrested two businessmen – Amit Agarwal and Subash Swain.

GST Commissioner, Sushil Kumar Lohani told reporters that both Amit and Subhash had created a network and generated invoices for procurement or sale of goods and availing input tax credits.
“Through 28 fake firms, the duo availed Rs 89 crore bogus input tax credit and passed on Rs 123 crore input tax credit for which the exchequer incurred a loss of around Rs 123 crore. The exact quantum of loss will be ascertained only after our officers start probing individual cases,” said Lohani.
Incidentally, 28 fictitious firms were floated in the name of different persons such as daily wage labourers, private tutors and unemployed youths.

The accused made purchase of iron and steel goods worth Rs 493 crore and sale of Rs 687 crore in their names, bypassing taxes and passed on bogus ITC worth Rs 123 crore.

An official said, steps are being taken to recover the input tax credit with interest and penalty.

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