Ex-director of 2 companies held over Rs 31 cr GST fraud

Kolkata: A former director of two different companies has been arrested during a joint operation by Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit, along with Directorate General of revenue Intelligence, Kolkata, on charges of availing irregular Input Tax Credit (ITC) on the basis of invoices supplied by non-existent GST registered suppliers.

Santosh Kumar alias Shudangshu Kumar was the former director and promoter of two companies - Onrise barter Private Limited and Siddheswari Marketings Private Limited.

The companies had purchased invoices from non-existent entities and had received IGST of Rs 31 crore after exporting the goods. It was also found during investigation that "Shudangshu was the key person involved in the fraudulent activity".

He was arrested on March 12 and remanded in judicial custody till March 26, when produced before the Chief Judicial Magistrate of Sealdah Court.

Investigation has revealed that the arrested person had availed irregular IGST refund causing loss to the government exchequer, as the companies had availed ITC on the basis of invoices of suppliers who never paid GST.

The investigating authorities had also come to

know that the companies had availed IGST refund after exporting the goods on payment of duty.

It was subsequently found during the joint operation by the investigating agencies that the GST registered suppliers do not exist at their registered place of business.