Related Keywords: chemicals and dyes, claiming input tax credit, eight textile dyeing and printing mills, fabrics, fake tax invoice, ITC, oil, purchasing raw materials like lignite, reducing liability to pay VAT, Sachin and Pandesara GIDC, VAT department raids
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.
