Kohima, Jan 12: The director of two mining companies has been arrested in Nagaland for his alleged role in a large-scale Goods and Services Tax (GST) fraud involving more than ₹53 crore, officials confirmed on January 12. The arrest was made by the Anti-Evasion Unit of Central GST (CGST), Dimapur, following an extensive probe into the misuse of input tax credit through fake billing.
The accused, identified as Atiqur Rahman Barbhuiya, is a director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, firms engaged in the coal and coke supply business. Investigators alleged that the companies fraudulently availed input tax credit by issuing and receiving invoices without any actual movement or supply of goods.
According to CGST officials, an examination of GST returns revealed that Bendangtoshi Mining Pvt Ltd allegedly availed ITC worth ₹27.52 crore, while Kevitho Mining Pvt Ltd claimed ₹25.76 crore, taking the combined amount to ₹53.28 crore. The investigation found that the invoices were not backed by essential statutory documents such as e-way bills, transportation details or corresponding bank transactions.
Physical verification carried out by CGST teams further raised red flags, as both firms were found to be either non-functional or not operating at their registered business addresses. Officials said this pointed to the creation of shell entities solely to facilitate fraudulent tax claims.
Based on the findings, Barbhuiya was arrested on January 10 under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which deal with issuing invoices without supply of goods and the wrongful availment of input tax credit. The offences are classified as cognisable and non-bailable under the law.
Authorities said the investigation is ongoing and efforts are being made to trace other individuals and entities that may be linked to the alleged GST fraud network.
