Surat: The State GST (SGST) department yesterday evening conducted a search operation in 44 places of the state including Surat, Vapi Ahmedabad in the bogus ITC scam (SCAM). 9 out of 11 companies of Surat doing bogus billing have been identified. Here Such companies have not been found at the place of GST registration. 100 crore input tax credit (ITC) in the name of scrap trade and textile firms will be questioned by the CA in different cities.
In Surat, the GST department went to the banks to check the ITC rupees. And the Aadhaar and PAN cards given to open the account have also been found to be bogus. A fortnight ago, searches were conducted at 50 locations of 25 companies. After this, this is the second major search operation. The search operation was conducted for two days in Surat, and Vapi. Registrations of 9 bogus companies have been cancelled. A team of SOG of city police has also been kept along during the investigation in Surat. The investigation is being conducted based on intelligence input. More than 25 such companies have been found. The department has seized the documents and continued the investigation.
Raids conducted across the state by the State GST team have unearthed massive bogus billing transactions. A total of 44 places including Surat, Vapi Ahmedabad were checked. Sources in the SGST department said that the GST rate in scrap trade is 18% and there is massive malpractice. Similarly, the sale of wholesale drugs is also involved in fraud. Cheater gangs in the cloth market are involved in this scam. Previously, names of new generations were revealed during investigation in 50 generations. ITC’s choice has been made to the government by creating bills showing only book trade.
There has been massive under-invoicing in the scrap. Even though the goods have been oversold, the ITC has been withdrawn by under-reimbursing the tax amount by making low-priced bills. Those who buy Alang scrap in Surat and run textile firms on cloth will be picked up in Varuni.