Jamshedpur: Man held for ₹9 crore GST fraud

JAMSHEDPUR: A 57-year-old man was arrested from his residence at Sonari Kagalnagar under same police station in Jamshedpur on charges of goods and services tax (GST) evasion worth ₹9 crore in Chaibasa in 2019, late Monday night and was sent to jail on Tuesday.

“A special investigation wing of West Singhbhum police arrested 57-year-old Kamal Roy late Monday night with the help of Sonari police. He was arrested after investigation found the charges of tax evasion by submitting fake documents to be true. Raids are on to arrest the other accused, Rakesh Kumar Garg and Brajesh Prasad Tiwari,” Amar Pandey, Chaibasa (Sadar) SDPO, said.

Pandey further said that two FIRs were filed on February 16, 2019 at Chaibasa Sadar police station under Sections 467, 468, 471, 420, 120 B of the IPC and Sections 132(1)(i) of JGST-2017 and 84(2)(i) of the VAT-2005 Act by commercial tax officer Prithvi Lal Rai of Chaibasa circle under

Jamshedpur division of state commercial tax commissioner.

As per police, the three partners had set up a company named Tirupati Enterprises in Chaibasa and showed GST liability as zero after conducting business in sponge iron from 2016 to 2019. The tax department investigation, however, found them guilty of availing the benefit of input tax credit (ITC) by using e-way bills on the basis of fake documents following which the FIRs were lodged with the Chaibasa police.

As per available information, tax officials had raided and seized incriminating documents from the office following a directive by the state commercial taxes department on August 18, 2018.

President of CAA Jagdish Khandelwal said Kamal Roy was not a CA but he prepared cost management account books. Joint commissioner of state commercial tax, Jamshedpur division, Sanjay Kumar said they have forwarded the names of few more accused connected with GST evasion to the state headquarters for further action.