11 hours ago
Cachar bizman held for Rs 25cr GST evasion through fake ITC claims
Silchar: State GST department's Silchar unit has arrested a Cachar-based businessman for allegedly evading goods and services tax (GST) to the tune of Rs 25 crore through fake billing and fraudulent input tax credit (ITC) claims.
The accused, Ishak Ahmed, listed as the director of Khushi Digital Payment Private Limited, was arrested following a raid at his business premises in Pailapool, Cachar. The raid was carried out based on inputs received from the department's Guwahati headquarters.
Officials on Tuesday said documents and computers were seized during the operation. Ahmed, a resident of Alipur in the district, was taken into custody after he failed to produce valid documents for business transactions estimated to be worth Rs 100 crore.
"We had specific inputs that Rs 15 crore worth of fake ITC was availed, and Rs 10 crore was passed on to other states — amounting to a total tax evasion of Rs 25 crore," said Ronit Roy, assistant commissioner of state tax on Tuesday. "Under Section 69 of the CGST Act, 2017, we are empowered to arrest individuals involved in evasion above Rs 5 crore," he added.
Roy said Ahmed was summoned to produce receipts and transaction-related documents.
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"We deferred the hearing twice. On June 14, during the second hearing, he submitted documents that appeared forged. He claimed that a chartered accountant based in Delhi held the original papers and requested two more days, but even after three days, he failed to submit them," Roy told the media.
Officials also found discrepancies in the company's directorship. While Ahmed claimed that ownership had changed hands last year, one of the listed directors denied involvement and has lodged a police complaint against him, alleging misuse of identity.
Manjit Kumar Borah, joint commissioner of state tax, confirmed the arrest, saying "Following legal procedures, he was arrested and produced before the court. He has been remanded to 14 days of judicial custody. This is one of the major cases of GST fraud in the region through fake ITC claims."
Sources in the department said that more arrests may follow as the investigation progresses, indicating that Ahmed may be part of a larger network involved in tax fraud.
