ITANAGAR, 28 Jun: The Central Goods and Services Tax’s (CGST) Itanagar Commissionerate has unearthed a massive GST evasion of Rs 98.43 crore by M/s Future Gaming and Hotel Services Pvt Ltd, the sole distributor of the Arunachal Pradesh State Lottery, the CGST Itanagar Commissionerate said.
Ayush Agarwal, a chartered accountant, was arrested on 27 June for his central role in the GST scam, it said.
“Investigations have revealed that the said company, in active connivance with the chartered accountant, was involved in clandestine removal of taxable supplies and suppression of actual turnover, thereby evading GST liability on a substantial scale,” the commissionerate said.
The supply value received from the State Lottery Department was grossly underreported, and manipulated returns were filed to conceal the true extent of taxable transactions.
“Agarwal was instrumental in advising and structuring the fraudulent scheme, despite being fully aware of the statutory provisions under the CGST Act, 2017,” the CGST Itanagar Commissionerate said.
Accordingly, he was arrested under Section 132 of the CGST Act, 2017.
While Agarwal has been apprehended, other individuals involved in the evasion are absconding.
The department is vigorously pursuing the investigation to identify and bring all perpetrators of the fraud to justice, it said.
This fraudulent scheme has caused a direct revenue loss of approximately Rs 98.42 crore (Rs 49.21 crore CGST and Rs 49.21 crore SGST).
“The CGST Itanagar Commissionerate reaffirms its resolve to take strict action against tax evaders and uphold the integrity of the GST regime,” it added.
