In 2024, the Directorate General of Goods and Services Tax Intelligence (DGGI) uncovered several major GST frauds across Gujarat, amounting to a staggering Rs7,000 crore. The fraud activities spanned cities including Rajkot, Ahmedabad, Kutch, Jamnagar, Surat, Vadodara, and Gondal, involving scrap dealers, base oil traders, and other firms that fraudulently claimed GST input tax credits using bogus invoices.
The largest raid was conducted by the Ahmedabad Zonal DGGI, which targeted Chetna Metal Works in Vatva. The owner, identified as Chavda, was arrested for claiming an input tax credit of rS20 crore using fraudulent methods. In Jamnagar, raids focused on oil dealers who imported base oil but falsely declared it as high-speed diesel, leading to a significant tax fraud.
Further raids in Ahmedabad and Rajkot unearthed a large cache of fraudulent documents, digital devices, and evidence linking scrap dealers and base oil traders to a rS200 crore scam involving wrongfully claimed input tax credits.
