In a major crackdown on tax evasion, the State GST (SGST) Department has unearthed an alleged GST fraud involving fraudulent Input Tax Credit (ITC) worth ₹23.08 crore in Jamnagar. The action has triggered concern across the city’s industrial and business circles.
The SGST Department conducted a search operation at M/s Mandvara Trading Company, located at Plot No. 3128 in Dared GIDC Phase-III, and arrested the firm’s proprietor, Ayush Sureshchandra Shah, along with his father, Sureshchandra Mulchandra Shah, for their alleged involvement in generating fake ITC through bogus billing transactions.
According to officials, the accused allegedly created and availed fraudulent ITC of approximately ₹23.08 crore by issuing and receiving invoices without any actual movement or supply of goods. Preliminary investigations indicate that the firm engaged in a systematic scheme of paper transactions to wrongfully claim tax benefits, resulting in substantial loss to the government exchequer.
Following the detection of the alleged fraud, SGST authorities initiated legal proceedings and took both accused into custody. The operation has sent shockwaves through the Dared GIDC industrial area, with traders and industrialists closely monitoring developments in the case.
Officials said further investigation is underway to examine the company’s financial dealings, bank accounts and possible links with other entities that may have been involved in the alleged tax fraud. Authorities are also working to assess the full extent of the financial irregularities and recover the loss caused to the state revenue.
The SGST Department has intensified its probe and indicated that further revelations may emerge as investigators trace the wider network behind the alleged fake invoicing and ITC claims.
