GST fraud surfaced in Muzaffarpur.

Patna, June 11, 2024: A shocking case of identity theft and tax fraud has come to light in Bihar’s Muzaffarpur district, where two individuals—from Delhi and Kerala—allegedly obtained GST registrations using the same PAN card belonging to a local resident, and went on to commit fraud worth Rs 40 crore, officials said on Tuesday.

An FIR has been registered at Mithanpura police station, and the district police have begun an investigation into the large-scale scam.

GST numbers misused in two states:

The incident surfaced when Rahul Kumar, a private tutor and resident of BMP-6 Durgapuri Colony, visited his lawyer to file his Income Tax Return. To his shock, he was informed that a GST liability of Rs 40 crore existed under his name.

Rahul then rushed to the GST office and met Deputy Commissioner Satyendra Kumar Sinha, who confirmed the massive outstanding tax liability and advised him to file a police complaint.

According to the FIR, Rahul’s PAN card was fraudulently used to take two separate GST registrations.

Star Enterprises (Kozhikode division, Kerala) business—Large-scale trade of aluminum, brass, and copper scrap and sheets. Estimated GST dues Rs 15 crore. Registration was taken using Rahul’s PAN card.

RK traders (Uttam Nagar division, Delhi) business—Milk and cream trading, Estimated scam amount Rs 40 crore, Same PAN card, mobile number, and Gmail ID used.

This is the second such case reported in Muzaffarpur. Earlier, a Rs 64-crore GST scam was executed in Delhi using the identity of Shubham, a mobile mechanic from Maharaji Pokhar Mohalla.

Fraud detected during Income tax return filing:

Victim speaks, “I have never applied for GST.”

 Rahul, who earns his livelihood by giving home tuitions, said he had no knowledge of the fraudulent registrations.

“I have never applied for GST. I do not even have a current account. I earn by going door-to-door teaching children. I don’t know how my PAN was misused,” he told police.

Police begin Investigation:

Ram Iqbal Prasad, SHO, Mithanpura police station, confirmed that an FIR has been filed.

“We have registered the case, and an investigation is underway. SI Mithun Kumar has been appointed to probe the matter.

The police are now attempting to trace the individuals who used the PAN card, mobile number, and email ID to obtain multiple GST numbers across two states.

Also Read: Chhattisgarh ACB and EOW arrested an alleged accused of a liquor scam from Bihar’s Gopalganj district.

EOM.