Gujarat : CGST Department Busts Bogus Input Tax Credit Scam worth Rs 12.76 Cr, Two Arrested in Bharuch

Vadodara : The Central Goods and Service Tax (CGST) department in Vadodara has made significant strides in cracking down on tax evasion with the arrest of two individuals from Ankleshwar town in Bharuch. The accused, identified as Aman Dixit and Maulik Parekh, are alleged to have orchestrated a fraudulent scheme involving the availment and passing on of bogus Input Tax Credit (ITC), resulting in the evasion of GST amounting to a staggering Rs 12.76 crore.

The investigation, which centered around M/s R B Enterprise (Legal Name: Aman Dixit), located at 1st floor, Modi Nagar, Ankleshwar, Bharuch, Gujarat, 393001, revealed damning evidence against the accused duo. Preliminary scrutiny of the evidence and statements obtained from the proprietor, Aman Dixit, and his associate, Maulik Parekh, uncovered a pattern of deceit spanning from March 2023 to January 2024.

During this period, Dixit and Parekh purportedly engaged in the fraudulent availing and passing on of Input Tax Credit based on fictitious invoices with a taxable value of Rs. 70.54 crore, all without any actual movement of goods. This duplicitous activity resulted in a substantial GST evasion amounting to Rs. 12.76 crores, raising serious concerns regarding compliance with tax laws.

The CGST department has accused Aman Dixit and Maulik Parekh of deliberately violating the laws of the land with the intent to evade Goods and Services Tax. Consequently, both individuals have been charged under Section 132 (1) (b), 132 (1) (b), and 132 (1) (l) of the Central Goods and Services Tax Act, 2017.

In addition to Dixit and Parekh, another individual, Udaybhai Mansara, suspected of abetting the offense, remains at large. Efforts are underway to apprehend Mansara as part of the ongoing investigation.

In light of their alleged involvement in the fraudulent scheme, Aman Dixit and Maulik Parekh have been placed under arrest under Section 69 of the Central Goods and Services Tax Act, 2017. The CGST department continues to emphasize its commitment to upholding tax compliance and combatting tax evasion through rigorous enforcement actions.