Trader held for availing ITC worth Rs 15.19 cr by submitting fake invoices

A textile trader has been arrested by the Directorate General of GST Intelligence (DGGI) in Surat for allegedly submitting fake invoices of Rs 100 crore to avail Input Tax Credit worth Rs 15.19 crore.
According to DGGI sources, the accused, arrested on Friday has been identified as Yatin Dudhat, a resident of Varachha, who runs textile business by the name of Dudhat International in Surat.
Dudhat allegedly received fake invoices from different firms without any supply of goods. The officials had earlier raided his office and business place in Surat and recovered several incriminating documents. Dudhat has violated the provision of sections of 132 of Central Goods and Services Tax, Act, 2017, an official said.
Sources said that the name of Dudhat cropped during a probe following the arrest of Chetan Patoliya, proprietor of Kunj Fashion, Surat.
On Saturday, Yatin Dudhat was produced before Chief Judicial Magistrate court of Judge R M Kalotara. He was sent to 14 days judicial custody at Surat Central jail by court.
DGGI sources added, they had carried out a search operation at Kunj Fashion, on May 2.
During investigation, the officials found Patoliya's involvement in availing the Input Tax Credit of around Rs 12 crores, with the help of fake invoices of sales and purchase of goods.
Patoliya in his statements to DGGI had mentioned that he had passed on (sold) ITC to different firms – including Infinity Impex, Salton Impex, Manya Overseas and Shreeji exports, without supply of goods – in Surat.
The DGGI is currently carrying out a probe in this case and are collecting the details of the firms that had received ITC from Kunj Fashion and Dudhat International.

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