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 Kumar Tailor, director of Magic Gold Bullion Pvt Ltd, was taken into custody for allegedly availing Rs 30.51 crore in ITC on fake invoices from non-existent firms between June 2020 and June 2025. Investigators found no evidence of actual receipt of goods or services, and the company reportedly lacked the infrastructure and manpower to support its declared turnover. Tailor also failed to appear before authorities or produce documentary proof for the claimed credits.
Case 2: Rs 20.05 Crore GST Evasion by Trading Company
In the second case, Om Jay Ramrakhiani, director of RFIC Trading Pvt Ltd, was arrested for alleged GST evasion exceeding Rs 20.05 crore. Officials allege the firm availed Rs 3.73 crore in ineligible ITC from Bharat Metal Corporation, which sourced supplies from several bogus entities with cancelled GST registrations. A search revealed that RFIC Trading's registered premises was a residential property with no business records. Authorities suspect the transactions involved fake invoices and ITC adjustments without actual cash payments.
Ongoing Investigation
Both directors have been remanded to judicial custody while investigations continue. Officials said the arrests underscore the SGST department's intensified crackdown on fake invoice networks and fraudulent GST credit claims, which remain a major source of revenue leakage.
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