Mining company Managing Director arrested for GST Fraud: ₹18.55 crore tax evasion unearthed

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Officials from the Commercial Taxes Department arrested Rajkumar Rekhya Roopsing Nayak, the Managing Director of M/s Sri Kavya Mining Infrastructures Private Limited, following a financial discrepancy in the company’s Goods and Services Tax (GST) filings. A probe into the company’s GST returns exposed a failure to report turnover and taxes amounting to ₹18.55 crores in GSTR-3B returns, said the officials.

The Commissioner of Commercial Taxes, Telangana, Dr. T.K. Sreedevi said that Rajkumar Rekhya Roopsing Nayak was arrested by the Assistant Commissioner (ST), Saroornagar-I Circle and remanded to judicial custody by the court for Economic Offences.

Upon close inspection of the GST returns, it was discovered that Sri Kavya Mining Infrastructures Private Limited had issued invoices without remitting the corresponding taxes to the government

The investigation further revealed an elaborate scheme where the company allegedly facilitated other beneficiary firms in wrongfully availing Input Tax Credit (ITC) based on the strength of these unpaid GST invoices. The modus operandi involved routing transactions without actual payment and issuing invoices to pass on ITC, which the beneficiary companies then utilised for tax payments, resulting in a substantial loss of revenue to the government exchequer

Additionally, M/s Sri Kavya Mining Infrastructures Private Limited is accused of availing incorrect ITC, amounting to ₹4.12 crore, which was not reflected in the available GSTR 2A records. These issues were in violation of the provisions of the Telangana Goods and Services Tax (TGST) Act of 2017, or the rules established under it. Officials said that further investigations are underway to identify the masterminds behind the alleged fraudulent activities. 

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