Authorities in Ahmedabad have arrested another four accused in the state-wide bogus Input Tax Credit (ITC), with a firm named Dhruvi Enterprise at the centre of the whole tax evasion scheme.

The Ahmedabad Crime Branch on Sunday arrested Faizal Sheikh, Irfan Jethwa, Jigesh Desai from Bhavnagar and Paresh Dodiya of Gondal.

Sheikh received a commission for processing the files while Jethwa used to manage the firm. Desai was operating the bank accounts of Dhruvi Enterprises.

According to reports, Dodiya is the owner of Prakash Industries in Gondal.

How did Dhruvi Enterprise execute the scam?

The scam reportedly occurred between February 2023 and the end of April 2023. The Directorate General of GST Intelligence (DGGI) lodged a formal complaint, initiating the investigation.

One of the key culprits, Dhruvi Enterprise, was found to have fabricated rent agreements and submitted them to DGGI to fraudulently claim input tax credit.

The company also issued fake bills to facilitate bogus ITC claims for other entities. It was discovered that multiple GST registrations were obtained using the same PAN card across different locations.

Dhruvi Enterprise provided ITC to 12 companies, while it also claimed credit from companies whose GST registrations had already been cancelled.

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