• Notification Date: 15-02-2022
• Notification No: N/A

GST Fraud of Rs.4.38 Crore in Odisha

A new racket of offenders has been unmasked by the Odisha State CT and GST Enforcement Wing. The racket has been accused of claiming fake refunds worth Rs.4.38 crore under a company called Maa Salara Fly Ash Bricks located in Cuttack City.

The State CT and GST Enforcement team investigated the company of fly ash and bricks with 10 officers of the Cuttack Squad. The team followed the lead that was provided by the secret market intelligence team.

According to the report of the unit, the investigating team of the Cuttack Squad detected fake claims of GST refunds worth Rs.4.38 crore. The claim was made through an inverted duty structure.

The company has not utilized a major portion of the ITC benefits. The main raw material of the production of the company is the cement which is charged with 28% GST. But the finished product of the company is fly ash, on which only 12% of GST is applicable. The taxpayer has shown false purchase of cement from places like Keonjhar, Titrol, Panikoili, Jagatsinghpur, and Sukinda. The manufacturing unit of the products is based in Cuttack. According to the investigation, the quantity of bricks manufactured is quite less than the quantity of cement consumed.

The investigation led to the discovery of several other documents which are found to be incriminating. The investigating team has seized the bill books of six other firms for further investigation. The mastermind behind this operation has been purchasing fake invoices without any receipt of cement. The ITC benefits were used for discharging tax and claiming the balance ITC refunds. The mastermind has not used the e-waybill for purchasing the raw materials or goods.

Further details of the GST fraud racket will be unfolded as the investigation advances. The Commissionerate is taking further steps to find out other similar fraudulence cases of GST refund claims.