DGGI raids outlets in Ahmedabad, Rajkot, uncovers ₹100 cr scam in input tax credit

he Directorate General of Goods and Services Tax Intelligence (DGGI) conducted raids at 20 locations in Ahmedabad and Rajkot, uncovering a scam involving ₹100 crore of fraudulent Input Tax Credit (ITC) on Saturday.

According to reports, raids were conducted at 20 locations in Ahmedabad (Usmanpura, Kalupur, Dariapur, Shahpur) and Rajkot. Preliminary investigations have revealed that by creating all kinds of bogus bills, ₹100 crore were fraudulently obtained as ITC.

The DGGI said that the traders used to earn funds from the government in the name of bogus companies and showed false transactions of purchases and sales.

While the names of companies and owners are yet to be disclosed, sources suggest collusion of state GST officials in the scam.

In areas including Naranpura, Ghatlodia, Sola, Gurukul, and Satellite, shopkeepers themselves say that they have fixed monthly payments (bribes) with GST officers, due to which no action is taken against them, as per sources.

For the past month, intelligence officers have been continuously conducting raids on businesses wrongfully claiming ITC.

In Ahmedabad, raids were conducted on scrap dealers and in Jamnagar, Junagadh, Rajkot, and Gondal on base oil dealers, uncovering a scam worth more than ₹200 crore.

The investigation into this case is still ongoing. Base oil has been supplied to major industries in Jamnagar and Rajkot, and there is a possibility of more big arrests.