In a major crackdown on tax evasion, the Commissionerate of State Goods and Services Tax (GST), Assam, has arrested a Tinsukia-based businessman, Ujjwal Kumar Agarwal, for his alleged involvement in a massive fake Input Tax Credit (ITC) racket valued at around ₹12 crore. The arrest comes after weeks of investigation that exposed a well-orchestrated scheme to defraud the state exchequer through bogus transactions and fabricated invoices. According to the Finance (Taxation) Department, the operation was part of an intensified state-wide effort to curb fake ITC claims that have led to significant revenue losses. Officials said the probe into Agarwal’s firm, M/s BKS Enterprises, located at Thana Road, China Patty in Tinsukia, began on September 19, 2025, following the detection of suspicious financial activities and mismatched invoices.
Investigators found that the firm reported a turnover of nearly ₹66 crore, of which approximately ₹12 crore was suspected to be fraudulent ITC claimed without any actual movement of goods or services. A search and inspection was carried out between September 19 and 20 under Section 67(2) of the GST Act, during which officers uncovered several discrepancies in billing records and tax filings. However, before officials could question him, Agarwal absconded, evading multiple summons issued by the department. Notices were sent to his registered address, and a formal directive under BNSS 35(3) required him to appear before the authorities on October 3, but he ignored the order. After several days of search operations, a joint team of the GST Enforcement Wing and Assam Police traced him to Ankur Path, Survey, Guwahati, where he was found hiding inside the bathroom of a friend’s house belonging to Nikshay Sarawgi. The arrest was made on October 7, ending a statewide hunt.
Following his capture, Agarwal was taken to Kar Bhawan, Dispur, the headquarters of the Finance Department, for detailed interrogation. During questioning, he reportedly failed to provide satisfactory answers about his firm’s involvement in passing and availing fake ITC through fictitious invoices. Officials believe the firm generated false bills to create an illusion of trade and subsequently used these records to claim input tax credits that were never legitimately earned. Later, the accused was produced before the Chief Judicial Magistrate (CJM) Court in Guwahati, where his bail plea was rejected. He has been remanded to 14 days of judicial custody as further investigation continues into the wider network that may be linked to the scam.