Two Dimapur traders arrested for issuing fake GST invoices worth over INR 11 crore; fraudulent ITC and non-existent firms uncovered.
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DIMAPUR — The Central GST Commissionerate, Dimapur, has arrested two individuals for allegedly issuing fake invoices without the actual supply of goods, leading to tax evasion of more than INR 11 crore.
According to a press note issued on Friday, the Anti-Evasion Unit of the Commissionerate found that two GST-registered taxpayers—Nazmul Islam and Jamal Ahmed Tapadar—had been issuing fraudulent invoices through firms dealing in pan masala trading.
Their declared business premises were found to be non-existent, and documents submitted for GST registration were verified to be fabricated.
Scrutiny of GSTN data and return filings revealed outward supplies shown only on paper, with no movement of goods.
The commissionerate stated that both individuals had wrongfully passed on fraudulent Input Tax Credit (ITC) through these fake invoices.
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Nazmul Islam, proprietor of SN Pan Shop, is alleged to have evaded approximately INR 5 crore in taxes. Jamal Ahmed Tapadar, owner of JAT Pan Shop and controller of Toshini Store, is accused of evading around INR 6.24 crore.
Verification of e-way bills related to the firms showed inconsistencies in vehicle numbers, routes, and movement patterns, none of which originated from or passed through Dimapur, further indicating that no goods were transported.
No financial records were produced to justify the high transaction volumes shown in their GST returns.
Both men were arrested in Dimapur on December 11 and produced before the court. Further investigation is underway, the press note stated.