The State Goods and Services Tax (SGST) Department has arrested two company directors in separate cases of fraudulent Input Tax Credit (ITC) claims, amounting to more than Rs50 crore in combined GST evasion.
In the first case, Yashwant Kumar Tailor, director of Magic Gold Bullion Pvt. Ltd., was arrested for allegedly claiming Rs30.51 crore in fake ITC through invoices issued by non-existent firms between June 2020 and June 2025. Authorities found the company lacked proper infrastructure or manpower to support its declared turnover. Tailor also failed to appear before investigators or provide relevant documentation.
In the second case, Om Jay Ramrakhiani, director of RFIC Trading Pvt. Ltd., was arrested for Rs20.05 crore GST evasion. Investigations revealed his company received Rs3.73 crore in ineligible ITC from Bharat Metal Corporation, which itself sourced invoices from bogus firms with cancelled GST registrations.
A search of RFIC Trading’s registered address revealed only a residential property with no business records or operational setup, confirming suspicions of fake billing and fraudulent ITC adjustments without actual cash flow.
Both accused have been remanded to judicial custody as the department continues probing the larger network of fake billing entities involved in the racket.
