Gujarat: SGST busts Rs 276 crore bogus billing scam, arrests two

Officials of the State Goods and Services Tax have arrested two persons, Salim Ismail Shaikh and Ikhlak Ismail Shaikh, in cases involving bogus billing worth Rs 275.74 crore. This has resulted in an estimated loss of Rs 41 crore to the state exchequer.

The duo is said to have duped seven people. The accused took people's identity cards, registered fake companies with their documents, transferred Input Tax Credit to their accounts, and siphoned off the money. The duo registered fake companies under different names. These include Hadi Corporation at Dudheshwar, Nox Enterprise at Rakhiyal, Bet Enterprise at Dudheshwar, Bharat Enterprise at Dudheswar, A P Enterprise at Dudheshwar, M & M Enterprise at Ashram Road, and Shiv Enterprise at Navrangpura. The duo has been arrested and presented before the court of chief metropolitan magistrate in the city.

The move follows intense scrutiny of GST returns filed, as well as of e-way bills. Based on these documents, the officials conducted their search operations, but found the addresses mentioned in the registration forms of the companies as fake. They then raided the locations of the accused and arrested them. Of late, the staff of the state GST authority have been cracking down on businesses indulging in fraudulent practices, to prevent tax evasion.

TWO ARRESTED

• The two people arrested by SGST officials have been identified as Salim Ismail Shaikh and Ikhlak Ismail Shaikh 
• The duo is said to have duped 7 people 
• Body has been taking up cases of bogus billing