caalley logo

The alley for Indian Chartered Accountants

Ahmedabad: One held for Rs 20cr tax evasion via GST fraud

Ahmedabad, Oct 15, 2023

The Ahmedabad zonal unit of the directorate general of GST intelligence (DGGI) recently unearthed a case involving Rs 20 crore of tax evasion through GST fraud in the chewing tobacco business.

According to top sources, JD International, based in Ahmedabad, availed of input tax credit and claimed IGST refunds fraudulently, without supply of physical goods. Harsh Patel, a manager of the firm, was arrested. "Based on intelligence received and developed by officers of the unit, it appears that JD International, owned by Dipesh Jain and controlled and managed by Harsh Patel, procured chewing tobacco of the Baghban brand. Records of dispatch revealed that the consignment was sent to two manufacturing companies to process on a job-work basis," a source told TOI.

"The investigation revealed that the purchase of Baghban brand tobacco shown by the taxpayer was fraudulent/irregular as they issued invoices without actual supply of goods," the source explained.

The DGGI Ahmedabad team conducted search operations at 15 premises, which led to the recovery of incriminating documents.

The investigation found that the firm had obtained input tax credit of Rs 20 crore unlawfully, which was claimed as IGST refund citing export of branded tobacco.

Sources said that statements of company employees, suppliers, agents and workers confirmed these facts. Patel was arrested on October 13 and presented in court. He was remanded in judicial custody for 14 days.

[The Times of India]

Read more on:
Don't miss an update!
Subscribe to our newsletter