A surprise search and seizure by Goods and Services Tax ( GST ) authorities in Gujarat uncovered a ₹19.5 crore tax evasion scheme. The authorities searched about 14 firms that are all involved in Copper trading in Gujarat based on the received information and particular intelligence.
The search was focused on some specific locations and copper traders located at Surat, Rajkot, Bharuch, Vapi, Junagadh, and Bhavnagar. The Goods and Services Tax ( GST ) authorities arrested Sandeep Anwar Virani who is a partner at Fortune Copper Industries situated in Surat, Gujarat for alleged involvement in the tax evasion crime of Rs. 19.5 crore.
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The Chief Judicial Magistrate has granted police remand for Virani until November 16, 2024, to make further interrogation.
During the investigation, the authorities found that there was a large scale of tax evasion committed by these firms showing fake purchases of copper. Across these firms, Goods and Services Tax ( GST ) officials uncovered tax evasion exceeding Rs. 48 crore, and four firms were deemed entirely bogus.
The Goods and Services Tax ( GST ) department has blocked tax credits worth Rs. 1.90 crore and attached assets totaling Rs. 22.98 crore to prevent further revenue losses. As the investigation begins, we can expect more arrests, particularly in the copper trading business.
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Recently, we heard about the all-India drive against fake companies launched by tax authorities. This operation which was started in August and ended in late October 2024, fully focused on exposing companies involved in Goods and Services Tax ( GST ) fraud. They investigated around 73,000 companies suspected of misusing GST credits through fake transactions.
Following the all-India drive, now Gujarat State Goods and Services Tax ( GST ) officers started the investigation into tax evasion and bogus companies showing that the state is committed to reducing GST fraud at a local level.
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