Odisha’s GST Enforcement Authorities on had arrested two persons named as Amit Beriwal, and Subash Chandra Swain, proprietor of two companies in Rourkela, for their involvement in GST fraud.
It was found that the they had availed ₹89 crores of fake input tax credit (ITC) and passed input tax credit of ₹123 crores on the basis of fake invoices. Beriwal with Swain and others have created around 28 fictitious and dummy firms in the name of persons who belong to basically lower income section of the society like daily wage labourers, private tutor, unemployed youths, housewives etc.
They promised people about giving employment and obtained identity documents from the these people. On the basis of these documents, GST registration has been done of various fake entities and shown purchase of iron and steel goods worth ₹493 crores and sale of ₹687 crores in their names without payment of tax.
They made all the transaction on the basis of various bank accounts which have been operated in the name of these dummy firms. The department is taking necessary steps to recover the input tax credit availed by the recipients of Odisha with interest and penalty.