Tax officials arrest mining company MD for GST irregularities of 18 crore

Hyderabad, Jan 1, 2024

Commercial tax officials have arrested Sri Kavya Mining Infrastructures managing director in connection with 18.5 crore Goods and Services Tax (GST) irregularities. The company is allegedly involved in issuing fake GST invoices and availing input tax credit (ITC).

According to commercial taxes department commissioner T K Sridevi, the arrested accused was identified as Rajkumar Rekhya Roopsing Nayak, managing director of Sri Kavya Mining Infrastructures Private Limited .

“On verification of GST returns, it was found that Sri Kavya Mining Infrastructures Private Limited had issued GST invoices without paying taxes to the government and beneficiary companies availed ITC based on these GST invoices. The firm is routing the transactions without actual payment and issuing GST invoices in passing on ITC credit, who have actually availed ITC based on such GST invoices.

“The beneficiary companies utilized the same for payment of tax through credit account, resulting in loss of revenue to exchequer,” Sridevi added. Kavya Mining had availed wrong ITC, which was not available in GSTR-2A, to the tune of 4.12 crore.

“The acts of the company is wrongful availment of irregular credit, which is in violation of the provisions of the TGST Act, 2017. The modus operandi adopted by Rajkumar was that Kavya Mining Limited indulged in claiming wrong ITC and issued fake/bogus GST invoices and passing on input supply of goods/services, facilitated the firms to avail and utilize wrong ITC on the strength of fake/bogus invoices issued by them”.

The accused was produced before the economic offences court and remanded in judicial custody.

[The Times of India]