SGST dept arrests 2 firm directors in ₹50cr ITC fraud cases

SGST department has arrested two company directors in separate cases of fraudulent Input Tax Credit claims, collectively involving GST evasion worth approximately ₹50 crore

Pune: The State Goods and Services Tax (SGST) department has arrested two company directors in separate cases of fraudulent Input Tax Credit (ITC) claims, collectively involving Goods and Services Tax (GST) evasion worth approximately ₹50 crore.

SGST department has arrested two company directors in separate cases of fraudulent Input Tax Credit claims, collectively involving GST evasion worth approximately ₹50 crore. (AFP (PIC FOR REPRESENTATION))

Yashwant Kumar Tailor, director, Magic Gold Bullion Pvt. Ltd., was arrested on Saturday for allegedly availing ITC of ₹30.51 crore on the basis of fake invoices issued by non-existent firms between June 2020 and June 2025, according to release issued by SGST.

“Investigations revealed that the company had neither the infrastructure nor manpower to justify its declared turnover. Authorities noted that Tailor failed to appear before the department or produce requisite supporting documents,” SGST stated.

In the second case, Om Jay Ramrakhiani, director, RFIC Trading Pvt. Ltd., was taken into custody on Saturday for his alleged involvement in fraudulent GST evasion exceeding ₹20.05 crore, the press release stated.

The SGST department stated that both arrests are part of its ongoing crackdown on fake invoicing and fraudulent ITC claims, which cause revenue losses to the state exchequer.