A father-son duo from Jamnagar has actually been detained for supposed
The Gujarat State GST Department has actually busted a phony invoicing and input tax credit(ITC )scams racket including deals worth over 128 crore, resulting in the arrest of a father-son duo from Jamnagar in connection with tax evasion of more than 23 crore.
Performing on particular intelligence inputs, the department performed collaborated search and seizure operations on June 16 throughout 22 companies topped Jamnagar, Rajkot, Ahmedabad, Gandhinagar, Vadodara, Surat and Bhavnagar. The entities consisted of M/s Mandovara Trading Co., to name a few. Throughout the examination, authorities detained Sureshchandra Moolchand Shah, owner of M/s Mandovara Trading Co., and his child, Ayush Sureshchandra Shah, for their declared participation in deceitful ITC claims and tax evasion amounting to 23.08 crore.
Browse operations throughout Gujarat expose multi-city shell company network
According to the department, the company took part in massive tax evasion by reserving phony purchases of brass and copper scrap and declaring input tax credit for non-genuine deals. Initial findings recommend that the entity tape-recorded made deals going beyond 128 crore through shell companies, with no real motion of products, with the intent to defraud the exchequer.
Phony billings and ITC abuse under GST Act arrangements
The department specified that the wrongful availment of input tax credit makes up an offense under Section 132( 1 )(c) of the GST Act, while issuance of phony billings to hand down such credit falls under Section 132( 1 )(b) of the Act. Following the facility of prima facie proof, both implicated were apprehended to assist more examination. Authorities stated the probe is continuous and additional circumstances of tax evasion and extra GST liabilities might become analysis of connected entities continues. The department has actually suggested that it is pursuing stringent legal action to secure and recuperate federal government profits.
GST Department alerts taxpayers versus sharing delicate monetary information
The State GST Department has actually likewise prompted taxpayers and people to stay alert versus scams and prevent sharing delicate files such as Aadhaar, PAN, GST registration information and checking account details with unidentified or unauthorised individuals, cautioning that abuse of such information can result in monetary scams and identity theft.
Released on June 23, 2026
