The State GST Department has detected large-scale GST evasion involving an Ahmedabad based pharmaceutical group comprising 11 related entities engaged in pharma and chemical trading, an official statement said.
During coordinated search operations conducted at 32 premises across 14 locations, mainly in Ahmedabad, it was found that several entities were operating from common centralized premises at Makarba.
Investigation revealed that certain entities had amended their GST registrations to include iron & steel/ingots trading and were involved in the fraudulent availment of Input Tax Credit (ITC) through bogus invoices and e-way bills without actual movement of goods.
Advanced data analytics, including RFID and toll-plaza verification, confirmed paper transactions, while multiple declared places of business were found non-functional.
Record-based analysis has so far uncovered taxable transactions of ₹114.89 crore involving fraudulent ITC of ₹20.68 crore.
As the evasion exceeds the statutory threshold of ₹5 crore, the offence is cognizable and non-bailable under Section 132 of the CGST/GGST Acts, leading to the arrest of two persons, who have been produced before the Additional Chief Judicial Magistrate at Ahmedabad and remanded to judicial custody.
Further investigation is ongoing, including examination of seized documents, digital evidence, financial trails, and inter-state linkages.
The State GST Department reiterates its commitment to strict action against tax evasion and protection of government revenue.
