Officials from the Commissionerate of State Goods and Services Tax (GST), Assam, have arrested businessman Ujjwal Kumar Agarwal for his alleged involvement in a fake Input Tax Credit (ITC) racket worth Rs 12 crore.
According to the Finance (Taxation) Department, the arrest followed a detailed investigation launched on September 19, 2025, into suspicious transactions linked to Agarwal's firm, M/s BKS Enterprises, located at Thana Road, China Patty, Tinsukia. The probe uncovered a detected turnover of approximately Rs 66 crore, of which Rs 12 crore was flagged as potential tax evasion.
Investigation Uncovers Fake Billing and Bogus ITC Claims
During a search and inspection operation conducted under Section 67(2) of the GST Act between September 19 and 20, GST officials reportedly found significant irregularities in invoices and ITC claims made by the firm. Investigators alleged that Agarwal's company had been availing and passing on fake input tax credits through bogus billing without any actual supply of goods or services.
Despite repeated summons, Agarwal allegedly evaded authorities. He was issued a notice under BNSS 35(3) to appear before GST officials on October 3, but failed to comply.
Accused Found Hiding in Guwahati Residence
After remaining untraceable for several days, Agarwal was found hiding in the bathroom of his friend Nikshay Sarawgi's residence at Ankur Path, Survey, Guwahati, on October 7, 2025. A joint team of the GST enforcement wing and Assam Police conducted the operation that led to his arrest.
He was subsequently taken to Kar Bhawan, Dispur, where he was interrogated regarding his firm's involvement in the fake ITC racket. Authorities stated that Agarwal failed to provide satisfactory responses to the evidence presented against him, following which he was placed under arrest.
Judicial Custody and Department's Statement
Agarwal was later produced before the Chief Judicial Magistrate (CJM) Court, Guwahati, where his bail plea was rejected. The court remanded him to 14 days of judicial custody pending further investigation.
The Finance (Taxation) Department lauded the officers involved in the operation, describing it as a model of data-driven and coordinated enforcement that underscores the state's firm stance against GST fraud and tax evasion.
"This operation reflects our continued commitment to identifying and dismantling fake billing networks that defraud the exchequer. The use of data analytics and field intelligence has strengthened our enforcement capabilities," the department said in a statement.
Wider Crackdown on GST Evasion in Assam
The arrest forms part of a broader crackdown by the Assam GST Department on fraudulent ITC claims, fake invoices, and shell firms engaged in tax evasion. In recent months, the department has intensified monitoring through AI-based data analysis and cross-verification of e-way bills and GST returns, enabling authorities to trace high-risk entities with greater precision.
Officials hinted that more arrests and prosecutions could follow as multiple cases of suspected fake ITC claims are under active investigation across the state.
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