The Directorate General of GST Intelligence (DGGI), Raipur Regional Unit, has arrested a partner of a Raipur-based steel manufacturing firm in connection with an alleged fraudulent Input Tax Credit (ITC) scam involving Rs 6.93 crore. The action marks a significant development in the agency’s continuing crackdown on tax evasion, fake billing and organised GST fraud networks. Acting under the provisions of Section 69(1) of the Central Goods and Services Tax (CGST) Act, 2017, DGGI officers, under the supervision of Additional Director General Sujit Malik, arrested Harish Wadhwani, partner of M/s Om Kiran Ispat Udyog (GSTIN: 22AABFO1161B1Z5), following an extensive investigation into alleged wrongful availment and utilisation of fake ITC. According to officials, the investigation revealed that the firm had availed and utilised approximately Rs 6.93 crore in ITC without actual receipt of goods.

 

Intelligence inputs developed by DGGI and subsequent scrutiny of financial and GST records indicated the involvement of the firm in a structured network of non-existent, bogus and non-operational entities allegedly created to facilitate fraudulent tax credit claims. Examination of GSTR-2A data and other statutory records further showed that substantial ITC had been availed from GST registrations that were subsequently suspended or cancelled by tax authorities. Investigators suspect the transactions formed part of a wider fake invoicing syndicate operating through multiple layers of shell entities. Officials said the accused had been absconding for nearly five months. Prior to his arrest, he had approached various judicial forums seeking anticipatory bail. However, his plea was ultimately rejected by the Supreme Court, paving the way for DGGI to execute the arrest.

 

DGGI stated that detailed investigation into the fake billing network, movement of funds and involvement of other beneficiaries is underway. Based on evidence gathered during the probe, further arrests cannot be ruled out. The agency reiterated its commitment to pursuing stringent action against organised tax fraud and revenue-loss schemes.