The State Goods and Services Tax (SGST) department has arrested two company directors in separate cases involving fraudulent Input Tax Credit (ITC) claims, leading to an alleged GST evasion exceeding Rs50 crore.
In the first case, Yashwant Kumar Tailor, director of Magic Gold Bullion Pvt Ltd, was apprehended for fraudulently availing Rs30.51 crore in ITC through fake invoices issued by non-existent companies. The fraud occurred between June 2020 and June 2025. Investigators found that the company had no functional infrastructure, operations, or staff to support its declared turnover. Despite repeated summons, Tailor failed to appear before authorities or provide any valid documentation.
In a separate crackdown, Om Jay Ramrakhiani, director of RFIC Trading Pvt Ltd, was arrested for his alleged role in a Rs20.05 crore GST fraud. Authorities revealed that the firm received Rs3.73 crore in ineligible ITC from Bharat Metal Corporation — a company linked to several bogus suppliers with cancelled GST numbers.
A search at RFIC Trading’s registered address revealed it to be a residential property with no signs of commercial activity or financial records. The SGST team uncovered that the transactions were entirely paper-based, involving fake invoices and ITC adjustments without any real movement of goods or monetary exchange.
Both directors are now in custody as investigations continue to uncover the wider nexus of shell companies and fraudulent billing practices.
