Two Siliguri-based firms – M/s Agrawal’s Bitumex Private Limited and M/s Simplex Natural Resources LLP – have come under the radar of the Directorate General of GST Intelligence (DGGI), Siliguri Zonal Unit, for alleged large-scale fraud in Goods and Services Tax (GST) compliance.
According to complaints submitted to the Additional Commissioner, both companies are accused of engaging in false and fabricated Input Tax Credit (ITC) claims and fraudulent refunds based on fictitious export sales to Nepal.
M/s Agrawal’s Bitumex Pvt. Ltd. is alleged to have booked fake purchase transactions of Bitumen from suppliers who reportedly do not possess the requisite licenses to supply such goods.
M/s Simplex Natural Resources LLP is accused of following a similar modus operandi, fabricating export sales to Nepal and using the sham transactions to avail fraudulent ITC.
Both entities are accused of defrauding the government exchequer by approximately Rs. 5–6 crore per quarter through these practices.
The firms allegedly record purchases of Bitumen from non-licensed suppliers.
These purchases are then used to claim ITC, despite the transactions being fictitious.
On this basis, the firms avail GST refunds on purported export sales, mainly shown as exports to Nepal.
The entire cycle, as per the complaints, is structured to siphon off government revenue without genuine trade activity.
If left unchecked, such practices could lead to significant losses to the exchequer. With quarterly refunds allegedly amounting to ₹5–6 crore per company, the cumulative loss could run into several tens of crores annually.
The complainants have urged the DGGI to initiate a thorough inquiry to safeguard government revenue and ensure accountability. Immediate investigation is expected to focus on verification of purchase invoices and supplier credentials; scrutiny of export records to Nepal; and cross-checking of ITC claims with actual movement of goods.
The case highlights the continuing challenges in curbing GST fraud, particularly in the area of fake invoicing and fraudulent export refunds. Despite several policy measures and technological upgrades in GST compliance, bitumen trade and exports to neighboring countries like Nepal remain areas prone to misuse due to monitoring difficulties.
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