In a major blow to GST fraud networks, the Directorate General of GST Intelligence (DGGI) has arrested Surat-based textile trader Yatin Dudhat for orchestrating a fake invoice racket worth Rs100 crore. The alleged scam allowed him to fraudulently claim Input Tax Credit (ITC) of Rs15.19 crore without any actual movement of goods.
Dudhat, a resident of Varachha and proprietor of Dudhat International, is accused of obtaining bogus invoices from various shell firms to claim undue tax benefits. During a recent crackdown, DGGI officials raided his office and seized numerous incriminating documents supporting the fraudulent activities.
Authorities confirmed that Dudhat’s actions constitute a violation of Section 132 of the CGST Act, 2017, which deals with offenses related to tax evasion and fake claims.
His arrest follows the earlier apprehension of Chetan Patoliya, proprietor of another Surat-based firm, Kunj Fashion. Patoliya was found to have availed ITC fraudulently amounting to Rs12 crore through a similar modus operandi. During interrogation, he confessed to passing on fake tax credits to firms like Infinity Impex, Salton Impex, Manya Overseas, and Shreeji Exports—all of which had no real goods movement.
On Saturday, Dudhat was produced before Chief Judicial Magistrate R.M. Kalotara and was remanded to 14 days in judicial custody at Surat Central Jail.
The DGGI’s probe is ongoing, with officials actively tracing the wider network of firms that benefitted from the fake ITC passed through Dudhat International and Kunj Fashion. Authorities have indicated that more arrests are likely as the investigation deepens.
