The Directorate General of Goods and Services Tax Intelligence (DGGI) has uncovered a massive GST evasion racket involving an estimated tax loss of nearly Rs 1500 crore in Ahmedabad, marking one of the largest enforcement actions in recent months.
As part of a coordinated search operation, DGGI officials carried out raids at multiple premises linked to Ahmedabad-based Techno Wire Data Science Limited, which had come under the scanner for suspected GST irregularities. The searches led to the detection of large-scale tax evasion allegedly carried out through fraudulent practices.
During the course of the investigation, the DGGI arrested Prabhat Somani, Director of the company, for his alleged involvement in orchestrating the tax evasion scheme. Officials stated that the arrest was based on documentary and digital evidence seized during the raids.
According to preliminary findings, the company allegedly operated a well-planned mechanism of bogus billing and wrongful availment of Input Tax Credit (ITC) under the garb of providing data science and technology-related services. The investigation revealed that fake invoices were generated without actual supply of goods or services, enabling the accused to illegally claim and pass on ITC on a massive scale.
Officials indicated that the fraudulent activities resulted in a significant loss to the government exchequer and violated key provisions of the CGST Act. Digital records, financial documents, and other incriminating materials recovered during the searches formed the basis for the enforcement action.
Following the operation, the DGGI has tightened surveillance around the company's business network. Further investigation is underway to identify other entities, shell firms, and individuals that may have played a role in facilitating the alleged GST fraud.
The case once again highlights the DGGI's intensified crackdown on fake invoicing and ITC fraud, particularly in sectors where intangible services are misused to camouflage tax evasion.
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