Raids on 14 firms unearthed tax evasion to the tune of Rs 34 crore: SGST dept

A statement on Wednesday said that during the investigation, it was revealed that these firms were involved in alleged large-scale tax evasion by showing bogus purchases of copper.

The State GST had earlier arrested Sandeep Anwar Virani, Partner of Fortune Copper Industries, on November 13, for GST evasion to the tune of Rs 19.46 crore. On Tuesday, the SGST arrested Pragnesh Kantariya, a partner of M/s Infinity Exim, in Rajkot. Kantariya was allegedly found to have committed tax evasion by claiming fraudulent input tax credit based on bogus purchases of copper scrap. Kantariya had been booked earlier by Central GST authorities for tax evasion in a separate matter.

Wrongful availment of tax credit is an offence under Section-132 (1) (c) of the GST Act, and after finding his alleged involvement in this case, Kantariya was called for further probe.

The statement further said that primary probe had indicated that M/s Infinity Exim had shown fabricated financial transactions in excess of Rs 186 crore from bogus firms with the objective of causing loss to the government exchequer by evading tax to the tune of Rs 34 crore.