GST Department Arrests Ajay Kumar Shah Over Alleged Rs.21.49-Crore Bogus Input Tax Credit Scam
The Gujarat State Goods and Services Tax (GST) Department has arrested Ajay Kumar Satyanarayan Shah following a statewide search operation that allegedly uncovered a network of bogus firms used to claim fraudulent input tax credit without any actual movement of goods.
Preliminary investigations have revealed the alleged involvement of 11 bogus firms and billing transactions worth around Rs.119 crore, officials said. The department has so far raised a tax liability of Rs.21.49 crore.
Bogus Billing Without Actual Goods Movement Alleged
According to the preliminary investigation, the alleged racket involved generating invoices and bills without corresponding purchases or movement of goods.
The department alleged that Shah, proprietor of M/s Nataraj Industries and a partner in M/s Nataraj Metal Industries, availed input tax credit of more than Rs.21.49 crore on the basis of alleged bogus purchases.
Considering his alleged active involvement and the seriousness of the case, Shah was arrested by the State GST Department.
11 Alleged Bogus Firms Under Scanner
Investigators have identified the alleged involvement of 11 bogus firms, including entities linked to billing transactions reportedly carried out from the Odhav area.
Officials said transactions worth approximately Rs.119 crore were allegedly conducted through these firms.
The investigation is continuing to determine the full scale of the alleged network and trace the transactions linked to the suspected bogus billing.
Documents and Digital Devices Seized
During the search operation, GST officials seized important documents, computers and other digital devices.
The material is currently being examined as part of the ongoing investigation.
Officials said further scrutiny of the seized records and digital evidence could reveal additional facts and potentially lead to a higher tax liability.
