Surat Textile Trader Alleges Rs 98 Lakh VAT, CST Fraud by Tax Consultant Couple

Surat: A textile trader has filed a police complaint against a tax consultant couple, alleging they cheated him of nearly Rs 98 lakh by misappropriating money meant for the payment of Value Added Tax (VAT) and Central Sales Tax (CST) and allegedly using forged tax payment documents to hide the fraud.

According to the FIR, the couple had been managing the trader’s firm’s VAT and CST-related work since 1999. Police said that during the 2012-13 financial year, the male consultant allegedly persuaded the trader to let him make tax payments directly on the firm’s behalf, claiming it would make the process more convenient.

The trader subsequently shared his VAT login credentials, after which the couple began collecting money for tax payments. They allegedly provided VAT and CST challans along with payment reports, making the trader believe that the taxes had been deposited with the government.

Police said that between the 2014-15 and 2017-18 financial years, the trader transferred around Rs 98 lakh to the couple for payment of VAT and CST dues. He stopped using their services after the Goods and Services Tax (GST) regime came into effect.

The alleged fraud came to light in May 2024 when the trader found that his bank account had been frozen. On making inquiries, he discovered that the taxes had never been paid to the government. His outstanding tax liability had increased to Rs 3.28 crore, leading to the attachment of his bank account.

The Salabatpura police have registered a case of cheating, criminal breach of trust, forgery, and criminal conspiracy against the couple, who ran a tax consultancy office in Supertex Tower. DeshGujara