SGST arrests two in Rs 14cr ITC scam

Surat: The State Goods and Service Tax (SGST) department on Friday arrested two persons involved in a scam of fake Input Tax Credit (ITC) to the tune of Rs 14 crore.

Sources said that the accused had received specific information on the ITC scam involving two traders who had set up six bogus firms for the exchange of textile goods in Bhagal, Ring Road and Adajan areas in the city. Without physical supply of goods, the duo claimed ITC from the government exchequer.

In its preliminary investigation, SGST sleuths found that the duo, identified as Manish Shah and one Yogesh, had fraudulently claimed ITC on basis of fake invoices generated in the names of the bogus firms. Manish Shah is the mastermind of the scam and had created the bogus firms in the name of his relatives and friends showing fake addresses under GST registration.

However, the duo were presented in the district court on Friday where they have been sent in the judicial custody.