GST Officials Arrest Businessman in ₹12 Crore Fake ITC Scam in Assam

In a major crackdown on tax evasion, officials from the Commissionerate of State Goods and Services Tax (GST), Assam, have arrested businessman Ujjwal Kumar Agarwal for his alleged involvement in a fake Input Tax Credit (ITC) racket amounting to ₹12 crore.

According to the Finance (Taxation) Department, the operation began on September 19, 2025, following an investigation into suspicious transactions linked to Agarwal’s firm, M/s BKS Enterprises, located at Thana Road, China Patty, Tinsukia. The detected turnover in the case stands at around ₹66 crore, with tax evasion estimated at ₹12 crore.

A search and inspection under Section 67(2) of the GST Act was carried out on September 19 and concluded the following day. However, Agarwal allegedly absconded and ignored repeated summons from the authorities. Despite being served a notice under BNSS 35(3) to appear before the GST officials on October 3, 2025, he failed to comply and remained untraceable until October 7.

Subsequently, the GST team, with assistance from Assam Police, tracked him down to a residence at Ankur Path, Survey, Guwahati, where he was found hiding in the bathroom of his friend Nikshay Sarawgi’s house.

Agarwal was brought to Kar Bhawan, Dispur, where he was interrogated about his firm’s alleged role in passing and utilising fake ITC through bogus billing without any actual supply of goods or services. Failing to provide satisfactory explanations, he was placed under arrest.

He was later produced before the Chief Judicial Magistrate (CJM) Court, Guwahati, where his bail plea was rejected, and he was remanded to 14 days of judicial custody.

The Finance (Taxation) Department lauded the officers’ “collective effort and data-driven investigation,” calling it a significant success in the state’s campaign against tax evasion.

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