Assam: GST officials arrest businessman in Rs 12 crore fake ITC scam in state

Officials from the Commissionerate of State Goods and Services Tax (GST), Assam, have arrested businessman Ujjwal Kumar Agarwal for his alleged involvement in a fake Input Tax Credit (ITC) racket worth Rs 12 crore.

According to the Finance (Taxation) Department, the arrest follows a detailed investigation that began on September 19, 2025, into suspicious financial transactions linked to Agarwal’s firm, M/s BKS Enterprises, based at Thana Road, China Patty, Tinsukia. The probe revealed a detected turnover of approximately Rs 66 crore, of which Rs 12 crore was identified as potential tax evasion.

The GST officials conducted a search and inspection operation under Section 67(2) of the GST Act between September 19 and 20, uncovering irregularities in the firm’s invoices and ITC claims. However, Agarwal reportedly absconded during the operation and ignored multiple summons issued by the department.

Despite receiving a notice under BNSS 35(3) to appear before authorities on October 3, Agarwal failed to present himself. He remained untraceable until October 7, when a joint team of the GST enforcement wing and Assam Police located him hiding in the bathroom of his friend Nikshay Sarawgi’s residence at Ankur Path, Survey, Guwahati.

After being apprehended, Agarwal was brought to Kar Bhawan, Dispur, where he was interrogated regarding his firm’s alleged involvement in passing and availing fake ITC through bogus billing without any actual supply of goods or services. Upon failing to provide satisfactory explanations, he was placed under arrest.

The accused was later produced before the Chief Judicial Magistrate (CJM) Court, Guwahati, where his bail plea was rejected, and he was remanded to 14 days of judicial custody.

The Finance (Taxation) Department commended the officers involved, stating that the operation demonstrated a “data-driven and coordinated enforcement approach” that marks a major step forward in Assam’s ongoing crackdown on GST fraud and tax evasion.