DGGI unearths ITC fraud of Rs11 crore by pvt company

Surat: Directorate General of GST Intelligence (DGGI) raided a city-based chemical company and its six beneficiary companies for fraudulently availing of input tax credit (ITC) to the tune of Rs11 crore and evading Rs3 crore worth of GST by issuing fake invoices.
DGGI sleuths raided Universal Dyechem Private Limited, engaged in trading of dyes and chemicals, in the city. Searches were carried out at eight locations in Surat and Navsari districts. Preliminary investigation revealed that the company issued bogus invoices to pass on fake ITC without supply of goods. The company had shown non-existent two-wheelers, three-wheelers and mopeds for transportation of goods.
Further investigation revealed that the other six firms were illicit beneficiaries of fraudulent ITC. Universal Dyechem Private Limited owner Karan Toshniwal was questioned by the DGGI sleuths, officials said. Toshniwal admitted to the fraud of ITC to the tune of Rs11 crore along with the six units.
The DGGI has recovered an amount of Rs3 crore towards GST from the company.