The Preventive wing of CGST Ahmedabad South Commissionerate has  initiated an investigation against firms which are involved in the availment and utilization of fraudulent Input Tax Credit  without actual receipt of goods. These firms were primarily involved in trading of scrap. During the investigation, it has been found that there is a web of non existent/non functional firms who are involved in passing of fake Input Tax Credit  by routing the invoices through a series of firms.

2.            During the course of investigation, GST evasion of Rs. 36.95 crores having a taxable value of Rs. 205.27 crores involving 10 non – existent/ fictitious firms has been unearthed. Further, the proprietor of M/s. Ashapura Traders, Shri Vihol Jagatsinh Viramji has been arrested on 29.05.2023 for availing and utilizing fake Input Tax Credit to the tune of Rs.7.22 crores and was produced before the Hon’ble Additional Chief Metropolitan Magistrate Court, Ahmedabad on 30.05.2023 and the court has ordered for his judicial custody till 13.06.2023.

3.            Further, an All India Special Drive against fake GST registrations is currently being conducted to detect Suspicious/ Fake registrations. CGST Ahmedabad South Commissionerate is actively monitoring syndicates and groups involved in fraudulent availment and utilization of input tax credit involving non-existent & fictitious firms which leads to major evasion of GST. The Commissionerate has till now arrested four persons during the financial year 2023-24, who were involved in the fraudulent availment and utilization of input tax credit.

YP/GP/JD

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