Tax Fraud: Accountant Fraudulently claimed Rs.5 Crore ITC via using a closed GST Number of his Factory Owner

An accountant in Jamnagar has been accused of defrauding a factory owner by using the GST (Goods and Services Tax) number of a business that closed four years ago. The fraud was discovered after the Junagadh GST department sent a notice to the factory’s former owner.

Vishnu Pandya, a resident of Tirupati Park, Jamnagar, operated a brass components factory that closed in 2020.

Pandya, who now works as a Pandit, was astonished to receive a notice from the GST department, prompting him to investigate how the transactions using his GST number were completed.

The investigation discovered that his previous accountant, Raju Marvadi, had reactivated the closed GST number associated with Pandya’s factory, Kailash Metal, and registered a new account under the name ‘Riddhi Siddhi Casting’.

Marvadi took out a loan of Rs.5 lakh and used it for various transactions from 2020 to 2024. He also illegally claimed input tax credits worth Rs.5 crore.

Following this, Pandya filed a complaint against Marvadi. The cops are looking into the matter.