Shillong, Sep 10: Taxation Minister Abu Taher Mondal informed the Meghalaya Assembly about a suspected GST fraud worth nearly Rs 500 crore linked to illegal coke plants in the state.
The issue was raised through a Zero Hour notice moved by VPP legislator Ardent Miller Basaiawmoit from Nongkrem.
Mondal informed the House that according to GST portal records between 2022-23 and 2024-25, 29 operational coke plants out of 54 registered entities reported a cumulative turnover of Rs 307.06 crore, with a total tax liability of Rs 18.75 crore.
Of this amount, Rs 15.84 crore was discharged through Input Tax Credit (ITC) and the balance in cash.
He also said that these plants purchased 1,48,134 tonnes of coal valued at Rs 72.49 crore from outside the state during the same period.
Mondal stated that the report does not specify whether the fake invoice billing relates to the sale of coke or the purchase of coal as raw material. However, since the shell companies involved are located outside Meghalaya, it is likely that the fraud pertains to coal purchases by coke plants in the state.
The State GST Department has formally written to the Directorate General of GST Intelligence (DGGI) requesting information be shared to initiate necessary action against recipients of bogus ITC under the state’s jurisdiction.
Mondal assured the House that the state GST department is actively investigating fake firms operating in Meghalaya, which are engaged in passing on ITC to recipients located outside the state.
Earlier, initiating the Zero Hour Notice, Basaiawmoit said that the state would stand to lose 50 percent of the mentioned amount in the report if this racket would not have been unearthed and can even go much higher. He also flagged another concern about the image of the state.
“This is not the first time that a racket has been unearthed in Meghalaya or connected with Meghalaya. In the recent past we have witnessed major rackets that are taking place in Meghalaya such as, the international bike smuggling racket involving Bangladesh nationals, infiltration racket, cattle smuggling racket, trafficking racket, gold smuggling racket and the list can go on and on and now the GST racket involving taxation department,” the Nongkrem MLA added.
He also wanted to know from the government the steps being taken to find out who are the people of the state involved in the crime and whether officials of the taxation department are complicit in the crime.
