Trader arrested for GST Evasion in Vadodara

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The Goods and Services Tax ( GST ) department, on Friday, arrested a Vadodara-based businessman for the evasion of GST by fraudulently claiming Rs 14 crore as an input tax credit (ITC) by preparing bogus supply and purchase bills. This the first arrest in a GST fraud by Vadodara office.

The arrested person is identified as the chairman of HM Industries which is engaged in extracting castor oil, solvents and making steel pipes as well. Patel was first summoned to the GST and central excise commissioner in the city and questioned about discrepancies found in his transactions. The arrest was recorded after questioning.

“We started a thorough investigation after getting a whiff of the fraud. It came to light that Patel was preparing bogus bills to show supply and purchase that he never did,” officials told TOI.

Patel used fake documents to show the supply and purchase of stock of steel to other companies. But no such supply or purchase was ever done.

Recommended By Colombia Paresh Patel cooked up bills to claim ITC Bogus bills were prepared to take an input tax credit (ITC). Patel had imported machinery worth about Rs 12 crore, but they were lying idle as manufacturing hadn’t started. So, Patel started showing bogus supply and receipts to give an impression that his business is taking off,” the official added. Patel was arrested under section 132 of GST Act.

GST officials said that Patel came under the scanner after it came to light that the company to which he claimed to have supplied stock hadn’t received any supply.

The department has already seized the account books and other documents of the company.

The entire operation was conducted by the assistant commissioner (preventive) and his team in the GST and Central Excise Commissionerate, Vadodara 1.

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