• Notification Date: 06-06-2023
• Notification No: N/A

GST Evasion involving 10 Fictitious Firms Detected in Gujarat

A businessman has been arrested from Ahmedabad for allegedly availing fake input tax credit (ITC) to the tune of Rs 7.22 crore after the Central Goods and Services Tax commissionerate unearthed evasion of Rs 36.95 crore in GST involving ten non-existent firms, the CGST commissionerate here said on Wednesday. 

The preventive wing of CGST Ahmedabad south commissionerate found "a web of non-existent firms involved in passing of fake input tax credit by routing the invoices through a series of firms". During investigation, GST (Goods and Services Tax) evasion of Rs 36.95 crore having a taxable value of Rs 205.27 crore involving ten fictitious firms was unearthed, the CGST commissionerate of Ahmedabad south said in a release. The proprietor of one Ashapura Traders, Vihol Viramji, was arrested on May 29 for availing and utilising fake input tax credit to the tune of Rs 7.22 crore. He was produced before a metropolitan court here which sent him to judicial custody till June 13, stated the release. "The preventive wing of CGST Ahmedabad south commissionerate has initiated an investigation against firms which are involved in the availment and utilisation of fraudulent input tax credit without actual receipt of goods. These firms were primarily involved in trading of scrap," it said. Further, an all-India special drive is being conducted currently to detect suspicious/fake GST registrations, it said. The commissionerate is "actively monitoring syndicates and groups involved in fraudulent availment and utilisation of input tax credit involving non-existing and fictitious firms which leads to major evasion of GST," said the release. Four persons have been arrested during the current financial year so far who were involved in fraudulent availment and utilisation of input tax credit, it said. Input tax credit generally means claiming the credit of the GST paid on purchase of goods and services which are used for the furtherance of business.