Rourkela : Good and service tax (GST) officials on Thursday unearthed a Rs 123-crore GST fraud here in Odisha and arrested two businessmen in this connection.
The accused have been identified as Amit Agarwal and Subash Swain of Rourkela.
Investigation revealed that Agrawal and Swain created as many as 28 fictitious firms in the name of different persons such as daily wage labourers, private tutors and unemployed youths.
The accused made purchase of iron and steel goods worth Rs 493 crore and sale of Rs 687 crore in their names, bypassing taxes and passed on bogus ITC worth Rs 123 crore.
An official said, steps are being taken to recover the input tax credit with interest and penalty.