Shillong: The Meghalaya government has launched an investigation into fake firms suspected of issuing bogus Input Tax Credit (ITC) outside the state, Taxation Minister Abu Taher Mondal informed the Assembly on Thursday.
Responding to a Zero Hour notice raised by VPP legislator Ardent M Basaiawmoit over reports of a ₹500 crore GST scam linked to coke plants, Mondal assured the House that the matter was being pursued seriously.
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“The state GST department is actively investigating fake firms operating within Meghalaya, which are engaged in passing on ITC to recipients located outside the state. Coordinated action is being taken against these entities,” Mondal said. The government has also written to the Directorate General of GST Intelligence (DGGI) for details to initiate proceedings against beneficiaries under its jurisdiction.
The minister noted that while four Assam residents were arrested last month in a fake billing case, and a coke plant owner from Byrnihat was detained over alleged GST evasion of ₹150–200 crore, the DGGI has not revealed which Meghalaya-based coke plants may have benefited.
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Since the 2014 ban on rat-hole mining, Meghalaya’s coke plants have relied on auctioned coal and imports, with all interstate transactions reflected on the GST portal. However, Mondal admitted verifying authenticity was difficult as state officials cannot access supplier returns filed elsewhere.
Government data shows that between 2022–23 and 2024–25, 29 of the state’s 54 registered coke plants operated with a collective turnover of ₹307.06 crore and a tax liability of ₹18.75 crore. Mondal suggested the suspected fraud was “more likely tied to coal procurement than coke sales.”
