Raipur: The Chhattisgarh State Goods and Services Tax (CG SGST) department has uncovered a major tax evasion racket involving over 170 bogus firms, a government official revealed on Friday. The scheme, allegedly masterminded by Mohammad Farhan Sorathia, a GST tax consultant, has caused losses running into several crore rupees every month for the state exchequer through fake registrations, bills, and e-way bills.
According to a government statement, preliminary investigations suggest that just 26 of these fake firms generated e-way bills worth Rs 822 crore while reporting a turnover of only Rs 106 crore. Authorities estimate a preliminary GST revenue loss of around Rs 100 crore from these firms alone.
The syndicate was engaged in creating bogus firms and bills using the GST prime portal. The CG SGST’s Business Intelligence Unit (BIU) has been investigating the case for over a month.
On September 12, a search conducted at Sorathia’s office revealed that 172 firms were allegedly floated using forged documents. Sorathia reportedly employed five staff members to handle firm registrations, file returns, and generate e-way bills.
Investigators also uncovered fabricated rent agreements, consent letters, and affidavits used to secure bogus GST registrations. The forged documents were not limited to Chhattisgarh but extended to states including Punjab, Assam, Manipur, and Odisha.
These bogus documents helped register fake firms, which in turn issued fraudulent supply bills and e-way bills, the government statement added.
As part of the ongoing probe, the department searched the residence of Sorathia’s uncle, Mohammad Abdul Latif Sorathia, on September 17. They seized Rs 1.64 crore in cash along with four gold biscuits weighing 400 grams. The seized assets were handed over to the Income Tax Department for further action.
The racket involved several brokers, scrap dealers, and companies that benefited from fraudulent Input Tax Credit claims. A comprehensive investigation and further legal proceedings are underway.
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https://www.freepressjournal.in/business/gst-fraud-170-bogus-firms-dismantled-generated-822-crore-e-way-bills-reporting-turnover-of-only-106-crore
