Mining firm director arrested for ₹53 Crore GST fraud in Nagaland

The Anti-Evasion Unit of the Central Goods and Services Tax (CGST), Dimapur, has arrested the director of two mining companies for his alleged involvement in a Goods and Services Tax (GST) fraud amounting to ₹53.28 crore, officials said on Monday.

The accused, identified as Atiqur Rahman Barbhuiya, is the director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, both engaged in the supply of coal and coke. He was arrested on Saturday following an investigation into the fraudulent availment of input tax credit (ITC) through fake invoices issued without any actual supply of goods.

According to officials, scrutiny of GST returns revealed that Bendangtoshi Mining Pvt Ltd had allegedly availed fraudulent ITC of ₹27.52 crore, while Kevitho Mining Pvt Ltd claimed ₹25.76 crore, taking the total to ₹53.28 crore.

Investigators found that the firms had issued invoices without the movement of goods and failed to produce mandatory supporting documents, including e-way bills, transport records and bank statements. Physical verification carried out by CGST officials further revealed that both companies were either non-existent or non-operational at their registered places of business.

Barbhuiya has been booked under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017 , which pertain to the issuance of invoices without supply of goods and the fraudulent availment of input tax credit. The offences are cognisable and non-bailable.

Officials said further investigations are underway to identify other entities and individuals linked to the alleged GST fraud racket.