Mega GST scam

• Tax evasion involved in two rackets amounted to Rs 801 cr
• Operators created a network of 178 fake concerns in Bengal to issue fraudulent invoices
• They used forged documents, including PAN cards, Aadhaar cards, and rent agreements
• They laundered money through banking channels, cash transactions
• Directorate preparing a prosecution complaint, continuing its investigation

Kolkata: The Directorate of Commercial Taxes (State GST) of West Bengal has unearthed massive fake GST invoice rackets involving a turnover of Rs 4716 crore and arrested four key operators, officials said on Friday.

This is the first time in the history of the directorate since 1941 that arrests have been made directly under its Bureau of Investigation. Earlier, help from the police was taken for arrests, they said. “The tax evasion involved in the two rackets was a staggering Rs 801 crore”, Directorate of Commercial Taxes Commissioner Khalid Anwar said.

The total turnover involved in these two rackets amounts to Rs 4,716 crore, Additional Commissioner Sudeshna Mukhopadhyay said. “A calibrated investigation since February has revealed that four operators created a network of 178 fake concerns in West Bengal, issuing fraudulent invoices to evade Rs 801 crore in government tax revenue,” Mukhopadhyay said. She said two Deputy Commissioners Somasree Kar and Madhumita Kundu are the investigating officers who unearthed these rackets with the help of a team of about 25 officers of the Bureau of Investigation, South Bengal.

“They worked day and night to find out the entire trail. The investigation is still on,” Mukhopadhyay said. The operators used to lure unsuspecting individuals with petty cash or promises of employment and fraudulently obtained their PAN, Aadhaar, and other identification documents. Using them, they incorporated several fake firms and obtained GST registrations. “To further their fraudulent activities, the operators forged rent agreements, electricity bills, property tax certificates, and even signatures of premises owners and notaries. The entire racket was fueled by money laundering through both banking channels and cash transactions,” Mukhopadhyay said.

One of the arrested individuals is in judicial custody, while the other three have been granted bail with a directive to cooperate with the ongoing investigation.