The key accused in a Rs 17 crore input tax credit (ITC) racket, Jignesh Desai, has been sent to judicial custody after being arrested by the Surat Zonal Unit of the Directorate General of Goods and Services Tax Intelligence (DGGI). Desai, a director of the Mumbai-based iron and steel scrap trading company, Mindsmatter Consulting Pvt Ltd, was produced in court late in the evening and sent to judicial custody. He was accused of running a racket that involved claiming and passing on ITC worth Rs 17 crore to various non-existent firms.
The investigation revealed that Desai claimed and passed on ITC worth Rs 17 crore to 25 non-existent firms, with majorities of suppliers and buyers being non-existent. The racket, which continued for the past couple of years, was discovered by the DGGI, which found that no goods were supplied, and transactions were only shown on paper to claim ITC. The DGGI will issue notices to connected firms and individuals for further investigation.
Desai, a resident of Surat, operates his company from Mumbai and has been accused of claiming ITC worth Rs 17 crore in just a few years. He allegedly exploited the tax system by showing false transactions on paper and passing on the ITC to non-existent firms. The DGGI’s investigation into this case has uncovered a significant fraud and is likely to lead to further investigations and possibly more arrests.