Hyderabad: Rajkumar Rekhya Roopsing Nayak, the managing director of Messrs Sri Kavya Mining Infrastructures Private Limited, has been arrested by the commercial taxes department. He was arrested because he reported turnovers and taxes in GSTR-01, but did not report a turnover and taxes amounting to Rs 18.55 crore in GSTR 3B returns.
The commercial taxes department discovered that Messrs Sri Kavya Mining Infrastructures Private Limited issued GST invoices without paying taxes to the government. These invoices were used by beneficiary companies to claim Input Tax Credit (ITC). However, the company was not actually making the required payments and was using these invoices to pass on the ITC credit. As a result, the beneficiary companies used the credit for tax payments, leading to a loss of revenue for the government.
Additionally, Messrs Sri Kavya Mining Infrastructures Private Limited wrongly claimed ITC of Rs 4.12 crore, which was not available in GSTR-2A. These two issues violated the provisions of the TGST Act, 2017 and resulted in the wrongful availment of irregular credit by the company.
Rajkumar Rekhya Roopsing Nayak, the managing director of Sri Kavya Mining Infrastructures Private Limited, was involved in this fraudulent scheme. He claimed wrong ITC, issued fake/bogus GST invoices, and facilitated other firms to avail and utilize wrong ITC based on these invoices.
Nayak has been arrested for committing an offense punishable under the GST Act and has been remanded to judicial custody by the Court for Economic Offences. The arrest was made by the Assistant Commissioner (ST), Saroornagar-I Circle, under the supervision of the Joint Commissioner (ST), Saroornagar Division. Further investigation is underway to identify the actual masterminds behind this scam.
