Kohima, Jan 12: The Central Goods and Services Tax (CGST) Anti-Evasion Unit in Dimapur has arrested the director of two coal mining companies in Nagaland for his alleged involvement in a GST fraud amounting to Rs 53.28 crore, officials said on Monday.

The accused, Atiqur Rahman Barbhuiya, director of Bendangtoshi Mining Pvt Ltd and Kevitho Mining Pvt Ltd, was taken into custody on Saturday following an investigation into the generation of fake invoices and fraudulent availing of input tax credit (ITC).

According to officials, the probe revealed that Bendangtoshi Mining Pvt Ltd fraudulently claimed ITC worth Rs 27.52 crore, while Kevitho Mining Pvt Ltd claimed Rs 25.76 crore, without any actual supply of goods. Scrutiny of GST returns showed that invoices were issued without movement of goods and were not supported by e-way bills, transport documents, or corresponding bank transactions.

Physical verification conducted at the registered business premises of the two firms found the establishments to be either non-existent or non-operational, raising serious doubts about the genuineness of the transactions.

Barbhuiya has been booked under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which relate to the issuance of invoices without supply of goods and fraudulent availment of ITC. The offences are cognisable and non-bailable. Officials said further investigation is underway to identify other individuals involved in the alleged fraud.