Shillong: The Meghalaya government has launched a probe into fake firms allegedly involved in a massive Rs 500-crore Goods and Services Tax (GST) fraud linked to coke plants, state Taxation Minister Abu Taher Mondal informed the Assembly on Thursday.
Responding to a Zero Hour notice raised by VPP legislator Ardent M Basaiawmoit, Mondal said the state GST department is pursuing leads on entities accused of generating bogus Input Tax Credit (ITC) and passing it on to recipients outside Meghalaya.
“A coordinated effort is underway, and action is being taken against these fraudulent firms,” the minister assured.
The state GST authorities, he said, have also sought details from the Directorate General of GST Intelligence (DGGI) to identify beneficiaries of fake ITC operating within Meghalaya’s jurisdiction.
“Cases flagged by the DGGI are regularly shared, and action has followed wherever inputs have been received,” Mondal added.
The issue drew attention after reports of four Assam residents being arrested on August 20 in a fake billing case, along with the detention of a coke plant owner from Byrnihat in Assam, accused of evading GST worth Rs 150–200 crore.
While suspicions have been raised over coke plants in Meghalaya, Mondal clarified that the DGGI has not named specific units in the state.
He explained that coal supply remains a major challenge since the 2014 ban on rat-hole mining, with coke plants forced to rely on district auctioned coal and imports from outside Meghalaya.
All such inter-state purchases are reflected on the GST portal through e-way bills, he said, but verifying the authenticity of invoices is difficult since state authorities cannot access returns filed by suppliers registered elsewhere.
“Fake invoices are designed to pass on non-existent ITC. Fraud is established if suppliers are found non-existent, goods or services are not actually delivered, taxes are unpaid, or bogus ITC is used for settlement,” Mondal said, noting that such cases largely fall under DGGI’s domain.
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According to official GST records, 29 of the 54 registered coke plants in Meghalaya were active between 2022-23 and 2024-25, with a combined turnover of Rs 307.06 crore.
Their tax liability stood at Rs 18.75 crore, of which Rs 15.84 crore was settled through ITC and Rs 2.91 crore in cash.
During the same period, these plants purchased 1,48,134 metric tonnes of coal from outside the state, worth Rs 72.49 crore, paying Rs 24.57 crore as IGST.
Mondal said it was still unclear whether the fraudulent billing was tied to coke sales or coal purchases, though preliminary indications suggest the latter.
