In a significant development, a prominent bullion trader, Hitesh Lodhiya, found himself in the crosshairs of the Directorate General of GST Intelligence (DGGI) following his arrest in Rajkot. Lodhiya stands accused of orchestrating an elaborate tax evasion scheme, allegedly defrauding the government of a staggering ₹44 crore by means of forging bills and making wrongful claims for input tax credit (ITC).
The arrest unfolded in the wake of a meticulous search operation carried out by the DGGI at the premises of Astha Trading Company, a business specializing in the trade of precious metals, particularly gold and silver bars, commonly referred to as bullion. Hitesh Lodhiya, the proprietor of this establishment, was subsequently taken into custody.
According to an official statement by the DGGI, this operation unearthed a web of GST fraud with a taxable value amounting to a colossal ₹1,467 crore, accompanied by the dubious availing and passage of counterfeit ITC worth ₹44 crore. The ongoing investigation holds the potential for revealing an even more substantial quantum of fraudulent activity, a factor that continues to be explored by the authorities.
Lodhiya now finds himself booked under Section 70 of the Central Goods and Services Tax (CGST) Act, 2017, an indication of the seriousness of the allegations against him. The statement further reveals that Lodhiya has confessed to his involvement in the creation and use of counterfeit bills and invoices, all while falsely claiming ITC without any actual supply of goods.
The intricate web of deception doesn't end there. The DGGI alleges that Lodhiya was not acting alone in this scheme; rather, he allegedly collaborated with middlemen who played a pivotal role in the execution of these fraudulent activities. Shockingly, records show that Astha Trading Company has failed to pay a substantial sum of ₹650 crore to various supplier firms engaged in this deceitful enterprise.
This arrest and the subsequent investigation serve as a stark reminder of the continuous efforts by government agencies to curb tax evasion and protect public revenue. It underscores the vital role of vigilant authorities in maintaining the integrity of the tax system, while also emphasizing the need for businesses to adhere to the highest standards of ethics and transparency. The outcome of this ongoing investigation will undoubtedly be closely watched, as it has the potential to reveal further layers of complex financial malfeasance.
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