Assam GST probe into Guwahati coke firm enters fourth day

Assam's GST Intelligence and Enforcement Unit kept up its search of a Guwahati coal trading and coke manufacturing firm for a fourth straight day on Sunday, November 8, as it looks into suspected fake input tax credit (ITC) claims worth several crore rupees, India Today NE and Pratidin Time reported.

The firm, M/s Maa Kamakhya Coke Industries, has its office at Beltola Tiniali in Guwahati and a manufacturing unit at Amingaon across the Brahmaputra. Officials suspect it used invoices from taxpayers that did not really exist to claim credit and cut the GST it actually owed.

How the probe began

The search began on Thursday, November 5, after a preliminary inquiry pointed to wrongful ITC claims. On the first day the team seized documents and electronic devices, which are now being checked one by one. The operation continued on Friday and has not stopped since, according to both reports.

Input tax credit lets a registered business deduct the GST it has already paid on its purchases from the tax it collects on its sales. When credit is claimed against bills from shell or non-existent suppliers, the state loses revenue without any real goods changing hands.

Proprietors summoned

The firm has three proprietors: Anil Kumar Agarwal, Bimal Kumar Agarwal and Naveen Kumar Gupta, who is also known as Naveen Singhal. All three were summoned to appear before the investigating team.

Officials told the outlets that only Gupta has cooperated so far. The two Agarwals have allegedly stayed away despite repeated notices, and investigators have indicated they could be arrested if they continue to do so. None of the three has been charged, and no response from the firm or its proprietors has been reported.

During the search, the team found more than 10 GST registration numbers linked to the business, widening the set of transactions now under scrutiny. The unit is considering asking the Enforcement Directorate and the Directorate General of GST Intelligence to help examine the wider financial trail.

A separate GST operation is under way at Mahalakshmi Continental, a business owned by Singhal. Officials have not yet said what irregularities, if any, are suspected there.

The Assam GST department has carried out several searches over fake ITC in recent weeks, including one involving a Guwahati eatery chain and a contractor last month. NEInsider will update this story if arrests are made or the department puts a figure on the alleged evasion.