In a major crackdown on GST fraud, the Directorate General of GST Intelligence (DGGI) has arrested a Surat-based textile trader for allegedly generating fake invoices worth Rs 100 crore to fraudulently claim ITC of Rs 15.19 crore.
The accused has been identified as Yatin Dudhat, a resident of Varachha and proprietor of Dudhat International, a textile firm operating in Surat. According to DGGI officials, Dudhat procured fake invoices from various firms without any actual movement of goods, in a bid to avail undue tax credit.
Earlier, DGGI officials had conducted raids at Dudhat's office and business premises, seizing several incriminating documents. The authorities confirmed that the trader's actions are in violation of Section 132 of the CGST Act, 2017, which pertains to tax evasion and fraudulent claims.
Dudhat's arrest is part of a broader investigation that began with the apprehension of Chetan Patoliya, proprietor of Kunj Fashion, another textile firm in Surat. Patoliya was found to have illegally availed ITC of around Rs 12 crore using fake sales and purchase invoices. During interrogation, he admitted to passing on fake ITC to various other firms including Infinity Impex, Salton Impex, Manya Overseas, and Shreeji Exports-none of which received any actual supply of goods.
On Saturday, Dudhat was produced before Chief Judicial Magistrate R.M. Kalotara and was remanded to 14 days of judicial custody at Surat Central Jail.
The DGGI continues its probe and is currently tracking the network of firms that benefitted from fraudulent ITC through Dudhat International and Kunj Fashion. Officials warn that more arrests may follow as investigations deepen.
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