Surat: State Goods and Services Tax (SGST) department raided seven export units and unearthed input tax credit (ITC) fraud of Rs6.56 crore by them by showing fake supplies of goods in the city on Friday.

Official sources said the raids were conducted at 18 locations which included Begumpura, Magob, Sagrampura and Golvala Jakatnaka and huge amount of documents were recovered from the seven export firms. The scrutiny of the documents revealed that the firms had fraudulently claimed Integrated Goods and Services Tax (IGST) from the government by showing fake supplies to the tune of Rs64 crore.

During investigation, it was found that these export firms availed fraudulent ITC for seeking IGST refund from customs formations. The exporters used to show entries of non-existent bogus firms with fake addresses, which had taken GST registration based on forged documents without paying GST.

The department has recovered about Rs2.5 crore from the seven export firms so far.

Published On : 18-01-2020

Source : Economic Times