A racket involved in GST fraud was detected in Bihar, the Commercial Taxes Department said on Friday. Investigation revealed that the firm sold coal worth Rs 73 crore without any purchase and fake GST input tax credit was used, it said.
No business activity of the firm was found in its location, Madhubani district, and the proprietor was traced to be a rural woman who is not involved in any kind of business, it added.
"Further investigation revealed that the fictitious firm is part of the fake GST input tax credit (ITC) racket. The bogus firm acts as an initiator and passed on bogus/illegal claims to several other firms in its supply chain," a statement said. It is said to have supplied coal to a total of 19 firms -- 14 of Jharkhand, two of Bihar, and one each of Uttar Pradesh, Maharashtra and West Bengal, it said.
"During the preliminary stage of analysis, it was found that of the 14 firms of Jharkhand, registration of four firms had been cancelled by the tax authorities, which further proves the bogus nature of this syndicate. Rest 10 firms are also newly registered," it said. Commissioner and Secretary of Commercial Taxes Pratima told reporters that stringent action would be taken against those involved in the racket.
-With PTI Input