The Central Intelligence Unit of GST Vadodara has busted a racket of 206 “fake entities” spread in 10 states across the country which had illegally passed on fake input tax credit (ITC) worth Rs 154 crore by issuing fake invoices to the tune of Rs 1,101 crore.
A press release issued by CGST Surat stated: “The CGST officials worked on 40 fake units in Surat and arrested one person, identified as Karan Dodiya, on Wednesday.
Officials found that Dodiya had been running 206 fake firms spread in 10 states and 20 commissionerates through bank accounts operated by him. The officials also found 11 fake firms had availed ineligible fake credit of Rs 7.17 crore and passed on illegal fake credit of Rs 4.91 crore to others.”
Officials booked a case of fake invoices and fake ITC by M/S Dasrath Trading in which Rs 7.98 crore of illegal GST credit availed was passed on. Officials claim that Dodiya had been a link in passing on the ineligible ITC to Dasrath and other firms.”
Dodiya was sent to judicial custody for 14 days.