Mining firm director arrested in Nagaland for Rs 53.28 crore GST fraud

The director of two mining firms has been arrested in Nagaland for his alleged involvement in a Goods and Services Tax (GST) fraud amounting to Rs 53.28 crore, officials said on January 12.
The arrest was carried out by the Anti-Evasion Unit of the Central GST (CGST), Dimapur, following an investigation into the fraudulent availment of input tax credit (ITC) through the issuance and receipt of fake invoices without any actual supply of goods.
The accused has been identified as Atiqur Rahman Barbhuiya, director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd. Both firms are engaged in the supply of coal and coke, officials said.
According to the CGST, scrutiny of GST returns revealed that the two companies had allegedly availed fraudulent ITC of Rs 27.52 crore and Rs 25.76 crore respectively, taking the total to Rs 53.28 crore.
Investigators found that the firms had issued invoices without any movement of goods and failed to produce mandatory supporting documents such as e-way bills, transport records and bank statements. Physical verification conducted by CGST officials further revealed that both companies were either non-existent or non-operational at their registered places of business, raising serious concerns over the genuineness of the transactions.
Following the investigation, Barbhuiya was arrested on January 10, under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which pertain to the issuance of invoices without supply of goods and fraudulent availment of ITC. The offences are cognisable and non-bailable.
Officials said further investigation is underway to identify other entities and individuals involved in the alleged GST fraud racket.