The Directorate General of GST Intelligence (DGGI), Bhubaneswar Zonal Unit has arrested two top executives of a company over their alleged involvement in a GST (Goods and Services Tax) fraud involving as much as Rs 23 crore.
The Kalinganagar-based Maithan Ispat Limited, a manufacturer of products of iron and steel, was found to be involved in availing fictitious Input Tax Credit (ITC) between April 2018 and November 2018 without due support of relevant documents like invoices, said a release by the DGGI
Search was conducted at the factory and office premises of the company; and it was detected that it had taken ineligible ITC of Rs 23 crore in GSTR-3B returns for the month of April 2018 to November 2018 and utilised the same for payment of GST liability, thereby causing a loss of Rs 23 crore to the Government exchequer.
Further investigation revealed that two employees of the company, general manager (finance) Manas Ranjan Pahi and assistant GM (taxation) Surendra Kumar Patra were actively involved in the manipulation of these returns.
Accordingly, Patra was arrested in Bhubaneswar and Padhi was apprehended in Kolkata on January 2. Both were remanded to judicial custody for 14 days after being produced before a court. All efforts are being made to recover the Government dues along with interest and penalty, the release said.