Cachar-Based Businessman Arrested for Rs. 25 Crore GST Evasion Using Fake Bills

In a major crackdown on tax fraud, the Assam State GST Department’s Silchar Unit has arrested Ishak Ahmed, listed as the director of Khushi Digital Payment Private Limited, for allegedly evading Goods and Services Tax (GST) worth Rs. 25 crore through fake billing and fraudulent Input Tax Credit (ITC) claims.

The arrest followed a raid conducted on June 14 at Ahmed’s business premises in Pailapool, Cachar, after the department received inputs from its Guwahati headquarters. During the raid, officials seized multiple documents and computers from the firm. Ahmed, a resident of Alipur, was taken into custody after failing to produce genuine documents supporting business transactions worth approximately Rs. 100 crore.

Ronit Roy, Assistant Commissioner of State Tax, said, “We had input that around Rs. 15 crore of fake ITC was availed and Rs. 10 crore was passed on to other states. This totals to a Rs. 25 crore tax evasion. Under Section 69 (in The Central Goods and Services Tax Act, 2017), we have the authority to arrest individuals involved in evasion exceeding Rs. 5 crore”.

“Accordingly, we summoned him and asked him to produce the relevant documents. Considering the total 25 crores tax evasion, the invoice amount would roughly be Rs. 100 crores, and we asked for the receipts related to those transactions, which he failed to produce. The hearing was even deferred twice, and finally, when we fixed for June 14. It was the second hearing where he produced the documents, but those were not reliable. From the looks, we could say those were fake. He told us that he has a Delhi-based CA, who has all the original documents, but it would take him two days to send them. We instructed him to get the documents in one day, but he failed even when 3 days had passed”, further added Roy.

Roy further revealed that Ahmed had claimed the firm’s ownership was transferred last year. However, upon verification, one of the listed directors denied any involvement and has since filed a police complaint against Ahmed for misuse of identity.

Joint Commissioner of State Tax, Manjit Kumar Borah, confirmed the arrest and said, “Following due legal procedure, we arrested him and produced him in court. He has been remanded to 14 days of judicial custody. This is a significant case of tax fraud through fake ITC, and investigations are ongoing.”

Officials have indicated that Ahmed may not be the only individual involved, and further arrests could follow as the probe deepens.