VAT dept raids eight textile mills over fake invoices

Eight textile dyeing and printing mills in the city’s Sachin and Pandesara GIDC were held for claiming input tax credit (ITC) on fake tax invoices and thereby reducing their liability to pay VAT by the VAT department of state government on Friday.

Under the VAT system, bogus dealers (dealers who take registration on wrong credentials and then disappear) issue fake tax invoices on the strength of which genuine dealers claim input tax credit and reduce their VAT liability. Now, the VAT department has tightened the noose on such mill owners. A huge ITC racket is likely to be unearthed.

Official sources said VAT officials have seized documents that had fake entries and invoices during the raid.

The dyeing and printing mill owners have been purchasing raw materials like lignite, oil, chemicals and dyes, fabrics, etc, for manufacturing printed and dyed fabrics. These mill owners produced fake tax invoices to claim ITC.

Recent Posts

Researchers develop innovative technology for smart textiles

An innovative washable touchless technology now allows users to interact with textiles and apparel simply by pointing a finger over…

1 day ago

Technosport ,Karl Mayer to boost activewear production

Technosport has partnered with textile machinery manufacturer Karl Mayer to enhance its production capabilities using cutting-edge Tricot machines.

1 day ago

TexRev Project to turn textile waste into yarns

The Department of Science and Technology has partnered with Bayo Manila Inc. under the DOST CRADLE Program to launch the…

1 day ago

AGC Chemicals and DRYFIBER launch innovative repellent

AGC Chemicals and DRYFIBER, LLC have announced the development of non-fluorinated oil and water repellent for nonwoven fabrics and technical…

2 days ago

Schuh partners to transform waste into store fixtures

Schuh has partnered with Conscious Creative Unit and Are You Mad to repurpose post-consumer waste materials into functional and artistic…

2 days ago

Fashion for Good and TMC launch study on fibre fragmentation

Fashion for Good and TMC have launched of 'Behind the Break: Exploring Fibre Fragmentation,' a study aimed at identifying key…

2 days ago