In 2024, the Directorate General of Goods and Services Tax Intelligence (DGGI) authorities uncovered several scams amounting to ₹7,000 crore.
The Gujarat DGGI uncovered fraudulent activities in cities including Rajkot, Ahmedabad, Kutch, Jamnagar, Surat, Vadodara, and Gondal, where scrap dealers, base oil traders, and various other firms had engaged in GST input tax credit fraud. These entities falsely claimed input tax credits using bogus bills, leading to financial fraud.
The largest raid, conducted by the Ahmedabad Zonal DGGI, targeted Chetna Metal Works in Vatva. The owner, Chavda, was arrested for fraudulently claiming an input tax credit of ₹20 crore.
In Jamnagar, raids were carried out at dealers and distributors. This group of owners imported base oil, which they sold for industrial use. During the import process, they falsely declared the oil as high-speed diesel, committing a tax fraud worth several crores of rupees.
During raids on scrap dealers and base oil traders in Ahmedabad and Rajkot, large amounts of bogus purchase and sales documents, digital devices, and other suspicious documents related to wrongly claimed input tax credits were seized, with findings revealing a scam worth over ₹200 crore.
Source from: https://english.gujaratsamachar.com/news/gujarat/gujarat-reported-gst-scams-worth-7000-cr-in-2024
