CGST Thane Commissionerate busts fake Input tax credit racket worth Rs 8 crore, 1 arrested
India Today
CGST Thane Commissionerate busted a fake GST Input Tax Credit racket and arrested the proprietor of a Dahisar-based firm.
The Thane Central Goods & Services Tax Commissionerate in Maharashtra has busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Dahisar- based firm.
Acting on specific input from the Central Intelligence Unit of CGST Mumbai zone, the anti-evasion wing of CGST Thane Commissionerate initiated an investigation against a company named J. J. Lime Depot, which deals in the trading of construction materials.
An investigation revealed that this firm had fraudulently claimed input tax credit of Rs. 8.05 crore in its financial records. This firm had also issued bogus invoices of more than Rs. 40 Crore for passing on this tax credit, without any supply of goods, in gross violation of provisions of the CGST Act, 2017.
In his statement, recorded during the investigation, the proprietor of this firm admitted that he had issued fake invoices to many Mumbai-based infrastructure companies, for commission.
He was arrested on May 12 under section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act. He was produced before the Chief Metropolitan Magistrate on Friday.The Magistrate has remanded him to judicial custody for 14 days.
The CGST officers are currently using data analysis and network analysis tools to identify potential fraudsters. During the financial year 2021-22, the CGST Thane Commissionerate detected GST evasion of Rs. 1354 crores, recovered Rs. 34 crores and also arrested seven tax evaders.
