SGST officers unearths fraud of Rs 12 crore through ITC

Two scrap dealers remanded in judicial custody for 14 days

Aurangabad, June 30:

The State Goods and Services Tax (SGST) department on Wednesday arrested two scrap dealers in the city for allegedly making fake bills of sale of aluminum scrap of Rs 68 crore and duping the government for Rs 12 crore through GST input tax credit (ITC) without doing any transaction. The two have been remanded in judicial custody for 14 days by a first-class magistrate.

According to officials, scrap dealers Sameer Chaudhary of SR Metal and Manoj Vyas, owner of Doors World, are among those who have defrauded the government through ITC. Giving more information, joint commissioner G Srikanth said, the two traders traded with each other and made fake bills of sale with more than 20 other fake companies. Out of Rs 12 crores, Chaudhary duped the government for Rs 6 crores and Vyas for Rs 5.95 crores. It was also alleged that a fake E-way bill was made without any transportation of goods. These transactions are being thoroughly investigated by the SGST investigation department. SGST deputy commissioner Ravindra Jogdand, assistant commissioner Nitesh Bhandare, Prakash Gopnar and tax inspectors participated in the drive.

More than 100 businesses on radar

With state-of-the-art software, fast tags on toll plazas and other ways, tax evaders can be traced immediately. A software gives alerts on bogus transactions. Vehicles paying E-way bills but not passing on the designated route are also traced. Such technology has made it possible to nab tax evaders. More than 100 such businesses are on the radar of the department, said Srikanth.