The Directorate General of GST Intelligence Ahmedabad Zone arrested two people from Rajkot in connection with a bogus billing scam amounting to Rs 485 crore. The duo, Jay Patel and his brother-in-law, Sanjay Gojariya, were brought to Ahmedabad and the DGGI sought their remand.
Based on data analytics and intelligence, DGGI officials suspected fake billing taking place on a huge scale in Rajkot. Further investigation revealed the involvement of Patel and Gojariya who had floated at least 25 fake companies involved in brass and metal scrap trading.
According to DGGI Ahmedabad zonal unit, these firms existed merely on paper and the fake GST registrations were used to illegally avail of input tax credit (ITC) using bogus bills. Sources confirmed that ITC worth Rs 76 crore was illicitly claimed by the duo. Preliminary investigation reveals that Patel is the mastermind of this fake billing scam.