The Directorate General of GST Intelligence (DGGI) has arrested two individuals in Gujarat for their alleged involvement in a bogus input tax credit (ITC) racket involving fraudulent GST claims worth nearly Rs 30 crore. The arrests were made on Saturday by the Surat Zonal Unit of DGGI following an extensive investigation into fake billing and non-genuine GST registrations.
The accused have been identified as Rohit Sanghani, a Jamnagar-based tax consultant and advocate, and Vishal Gondaliya, proprietor of R D Enterprise, Jamnagar. Both were produced before a court and have been remanded to judicial custody. DGGI officials termed the arrest significant, noting that it is uncommon for a tax consultant and advocate to be taken into custody for actively facilitating fraudulent ITC availing. According to Imran Malek, counsel for DGGI, the accused played a key role in enabling and assisting the fraud.
The investigation, which began in November, revealed multiple non-genuine firms in Surat-including Maniyar Enterprises, Balaji Enterprises, Vaghela Industrial, Veer Exports and Capital Tea-engaged in the wrongful availment and passing on of fake GST ITC. This led officials to conduct searches in Jamnagar, where fraudulent ITC claims of around Rs 23 crore were detected. Digital devices such as mobile phones and tablets were seized from Gondaliya's residence on Ranjitsagar Road, while further probing uncovered Sanghani's alleged role in creating fake entities, issuing bogus invoices and e-way bills, and earning commissions for arranging ITC fraud running into crores.
CAclubindia
