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Gujarat GST raids firms making false ITC refund claim on clean energy

The State Goods and Service Tax (SGST) department raided offices of the power generating companies. The companies are engaged in the generation of for personal use through windmills and then fraudulently claim input tax credit (ITC).

About 20 companies premises are raided by SGST located in Surat and surrounding areas where the companies were claiming the ITC at the rate of 18% GST rate for generating power through windmills. These companies have set up wind turbine power projects in Kutch.

A senior GST officer said, “We came to know about the fraud after we came across a few ITC refund applications from a few companies generating power through windmills. After a detailed investigation, it was found that the companies were using the power for their own personal use. Despite this, they were claiming refund from the government exchequer.”

These companies had applied for ITC refund on power consumption through clean source of energy. However, the companies were not eligible for refund as they were utilising power for their own consumption by supplying the electricity generated in their windmills to the electricity companies.

The officials have seized documents from 20 companies related to power generation through windmills and further investigations are on.

Author: Niranjan Reddy

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