New Delhi: The Central Goods and Services Tax (CGST) Commissionerate, Navi Mumbai, on Friday April 1 said it has busted a fake input tax credit racket of Rs 19.84 crore, and arrested the director of a Vikhroli-based firm in this connection.
The person was arrested on March 30 under Section 69 of the Central Goods and Services Act for committing offences under Section 132 (1) (b) and (c) of the Act and was produced before the first class Judicial Magistrate in Vashi. The Magistrate has sent the accused to a 14-day judicial custody.
The CGST official said the company — Fortune Global Trade Private Limited, which was engaged in the trade of synthetic rubber, had engaged in availing and utilisation of fake GST input tax credit on the basis of bogus invoices of Rs 110 crore.
“Acting on a tip-off received from Central Intelligence Unit of Principal Chief Commissioner CGST Mumbai Zone, a team of officers of Anti-evasion section of CGST Commissionerate, Navi Mumbai, had conducted an enquiry against the mentioned company. The said company had availed fake input tax credit of Rs 9.92 crore from eight non-existing entities and had passed on the same to various entities, without actual supply of goods or services,” the official added.
This case is a part of anti-evasion drive launched by CGST Mumbai Zone against the fraudsters and tax evaders by issuing fake invoices and creating unhealthy competition for compliant taxpayers and defrauding the government exchequer.
As a part of this drive, Navi Mumbai Commissionerate has detected a tax evasion of Rs 500 crore, recovered Rs 20 crore and arrested 14 persons in the financial year 2021-22.
In another case, CGST Commissionerate, Thane Rural, arrested a GST practitioner for indulging in fake input tax credit fraud of Rs 176 crore by a Thane-based firm M/s Motec Traders.
The director of Fortune Global Trade Private Limited was later presented at the court.
The court has sent the accused to the judicial custody for 14 days. This is the third arrest in this case.
