The Central Goods and Services Tax (CGST) Itanagar Commissionerate has unearthed a 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. Ayush Agarwal, a chartered accountant for the firm, has been arrested in connection with the scam, it said.
The evasion has caused a direct revenue loss of approximately Rs 98.42 crore, including Rs 49.21 crore in SGST losses.
According to the commissionerate, investigations have revealed that the company, in connivance with its chartered accountant, was involved in clandestine removal of taxable supplies and suppression of actual turnover. The firm allegedly underreported the supply value received from the State Lottery Department and manipulated GST returns to conceal the true extent of taxable transactions.
Others involved in the scam are currently absconding.
While further investigation is underway, this case must serve as a wake-up call for both the commissionerate and the state government. The focus should now shift toward plugging systemic loopholes to prevent such large-scale tax evasion. One crucial step is to make the online monitoring and filing systems more robust to curb fraudulent leakages.
Moreover, punishment must be stringent. All defaulters should be permanently debarred to set a strong example and deter future violations.