The Central GST Commissionerate, Dimapur, has arrested two GST-registered taxpayers for allegedly issuing fake invoices without the actual supply of goods, causing tax evasion amounting to more than Rs 11 crore. The arrests were made on December 11 following an investigation by the Commissionerate’s Anti-Evasion Unit.
According to officials, the two individuals – Nazmul Islam, proprietor of M/s SN Pan Shop, and Jamal Ahmed Tapadar, proprietor of M/s JAT Pan Shop and controller of M/s Toshini Store – were found operating firms dealing in pan masala trading that existed only on paper. Their declared business premises were found to be non-existent, and the documents used to obtain GST registration were discovered to be fabricated.
Scrutiny of GSTN data and return filings revealed that the firms had issued fake invoices and shown outward supplies without any movement of goods, enabling the wrongful passing of fraudulent Input Tax Credit (ITC). Investigators estimated that Nazmul Islam had evaded approximately Rs 5 crore, while Jamal Ahmed Tapadar had evaded Rs 6.24 crore.
Further verification of e-way bill data exposed multiple discrepancies in vehicle numbers, routes and movement patterns. Officials said the supposed consignments neither originated from nor passed through Dimapur, corroborating that no actual goods were transported. The accused were also unable to produce financial records to substantiate the high-value transactions reported in their GST returns.
Based on these findings, authorities concluded that the duo had committed offences under Section 132(1)(b) of the CGST Act—issuing invoices without actual supply of goods—and Section 132(1)(f)—falsifying financial records or producing fake documents to evade tax. Both offences are cognizable and non-bailable.
The two were arrested on December 11 in Dimapur and produced before the court. Officials said further investigation is underway.
