The Assam State GST (AGST) Department has arrested Ishak Ahmed, Director of Khushi Digital Payment Private Limited, for allegedly evading taxes worth Rs 25 crore through fake billing and fraudulent Input Tax Credit (ITC) claims.
Acting on directives from the Guwahati Head Office, the Silchar unit of the AGST Department conducted a raid on June 14 at the company's premises located in Pailapool, Lakhipur. The operation led to the seizure of crucial documents, computers, and records linked to fake transactions.
According to Assistant Commissioner Ronit Roy, the investigation revealed that Ahmed had facilitated fraudulent ITC claims amounting to Rs 15 crore and had passed on an additional Rs 10 crore in fake credits to firms in other states. Despite being asked to present genuine documentation for transactions amounting to Rs 100 crore, Ahmed failed to do so, resulting in his arrest on Tuesday.
Authorities stated that the scam involved the generation of fake invoices and misuse of GST mechanisms to fraudulently claim and distribute ITC without any actual movement of goods or services.
The AGST Department emphasized that such fraudulent activities not only cause significant revenue losses to the exchequer but also disrupt fair market practices. Further investigations are underway to trace the beneficiaries of the fake ITC in other states and determine the full scale of the tax evasion network.
This arrest underscores Assam's continued efforts to clamp down on GST fraud and enhance compliance through stricter enforcement and data-driven scrutiny.
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