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First arrest in GST evasion in Bihar-Jharkhand

Rajasthan based trader arrested for GST evasion worth nearly Rs 10-crore

Jamshedpur, July 25: A team of GST intelligence arrested a Jodhpur Rajasthan based trader for GST evasion worth nearly Rs 10-crore in city late Tuesday evening. The team comprising officers of directorate general of GST intelligence, Jamshedpur regional unit, made the first arrest in GST evasion, in Bihar-Jharkhand.

The 51-year-old Dinesh Vyas, who had been summoned at GST intelligence office was arrested when preliminary investigation revealed that fake invoices were generated without actual receipt/supply of goods or services.

The trader availed irregular input tax credit (credit manufacturer’s received for paying input taxes towards inputs used in the manufacture of products) causing huge revenue loss to the government exchequer.

Confirming the breakthrough, deputy director GST intelligence, Jamshedpur regional unit, Gautam Kumar said this is the first arrest under the provisions of the CGST Act 2017 in Bihar-Jharkhand. Dinesh Vyas has been remanded for judicial custody to Ghaghidih Central Jail yesterday late evening.

The arrested person is the main culprit behind the entire conspiracy along with a few unknown at this point of time. It involves the modus of generating/procuring fake invoices without actual receipt/supply of goods or services he informed.

Sources in GST intelligence said that after initial investigations revealed anomalies, the Rajasthan trader Dinesh Vyas who is director of M/s Shrimali Industries Private Limited and proprietor of M/s Vaibhav Enterprises and M/s Shrimali Alloys was summoned and after unsatisfactory replies, he was arrested and presented in the special court of Jamshedpur civil court, Y C Verma and remanded to judicial custody for a period of 15 days.

“We will be taking him on remand shortly to find out involvement of others in the racket. We are investigating the fraud and more arrests will be made in the days to come,” added Gautam Kumar.

GST intelligence unit sources, revealed that M/s Shrimali Industries Private Limited at Jodhpur and Gandhidham (Gujarat), M/s Vaibhav Enterprises Jodhpur and M/s Shrimali Alloys, Gandhidham had received fake invoices from M/s Sidhi Vinayak Metal and Salt Company Private Limited (Bokaro), M/s RidhiSidhi Enterprises (Jaipur), without actually receiving any goods or services from them.

An official said investigation has revealed that a modus operandi is being followed whereby fake invoices are being generated for goods which have not been supplied at all. Based on these invoices, some entities are claiming input tax credit. Besides, without actually exporting goods, some entities are claiming GST refunds based on fake invoices.

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