Quick Summary
The State Goods and Services Tax (SGST) department has arrested two company directors in separate cases of alleged fraudulent Input Tax Credit (ITC) claims, collectively involving more than Rs 50 crore in GST evasion. Case 1: Rs 30.51 Crore ITC Fraud by Bullion Firm In the first case, Yashwant K
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FAQ :
The total alleged GST evasion amounts to over £50 crore, split between two separate cases.
Yashwant Kumar Tailor, director of Magic Gold Bullion Pvt Ltd, was arrested for allegedly claiming £30.51 crore in Input Tax Credit (ITC) on fake invoices from non-existent firms.
Om Jay Ramrakhiani, director of RFIC Trading Pvt Ltd, was arrested for alleged GST evasion exceeding £20.05 crore, including availing £3.73 crore in ineligible ITC.
Investigators found no evidence of goods or services being received for the claimed ITC, and one company lacked the infrastructure for its declared turnover. The premises of the second company was found to be a residential property with no business records.
Both directors have been remanded to judicial custody while the SGST department continues its investigations.
These arrests highlight the SGST department's intensified efforts to combat fake invoice networks and fraudulent GST credit claims, which are significant sources of revenue loss.
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