Rajkot: A man from Rajkot has been arrested in connection with a major GST scam worth ₹186 crore, involving fraudulent claims of Input Tax Credit (ITC). The accused, Pragnesh Manharbhai Kantiya, a partner at M/s. Infinity Exim, allegedly used bogus transactions to claim false ITC amounting to ₹34 crore.

Based on the information received by the State GST Department’s Investigation Branch and related research, search and seizure operations were conducted on November 11, 2024, against 14 companies, including Fortune Copper Industries and Infinity Exim, which are involved in the copper business in Surat, Rajkot, Bharuch, Vapi, Junagadh, and Bhavnagar.

During the operations, the department arrested Sandeep Anwar Virani, a partner at Fortune Copper Industries, for his involvement in GST fraud amounting to over ₹19.46 crore on November 13, 2024, in Surat.

On December 3, 2024, Pragnesh Manharbhai Kantiya, a partner at M/s. Infinity Exim, appeared before the investigating officer. During the investigation, it was revealed that the companies were engaging in large-scale fraud by showing bogus copper purchases. Pragnesh Kantiya claimed false Input Tax Credit (ITC) based on these fake transactions, resulting in significant tax evasion. It is noteworthy that Pragnesh Kantiya had previously been involved in tax fraud cases handled by the Central GST department.

Claiming false ITC is a criminal offense under GST law Section 132(1)(c), and based on clear evidence of Kantiya’s involvement, the department has arrested him for further investigation. Preliminary findings indicate that M/s. Infinity Exim showed false financial transactions worth over ₹186 crore from bogus suppliers and fraudulently claimed over ₹34 crore in false ITC, causing significant losses to the government.

The investigation is expected to uncover large-scale fraud and outstanding GST liabilities. The state’s tax department is taking legal action to protect government revenue and recover the defrauded amount. DeshGujarat