Businessman arrested for using Rs100 crore of bogus invoices
Premium- Central GST Commissionerate at Navi Mumbai cracked the fake input tax credit racket
NEW DELHI : Goods and Services Tax (GST) officials in Mumbai have arrested the proprietor of a firm engaged in metal scrap trade for allegedly making use of fraudulent tax credits with the aid of bogus invoices of around ₹100 crores, said an official statement from the finance ministry.
Central GST Commissionerate at Navi Mumbai cracked the fake input tax credit racket, the statement said. The amount of bogus credit used by the firm is about Rs. 21 crores.
A team of officers in Mumbai conducted an enquiry against the firm and investigations revealed that the taxpayer has availed and passed on fraudulent input tax credit from various non-existing and bogus firms, the ministry statement claimed.
The proprietor was arrested under CGST Act provisions for alleged offences and a local court has sent him on judicial custody for 14 days.
This case is a part of an anti-evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and are defrauding the exchequer, the statement said. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of about ₹500 crore, have recovered Rs. 20 crores and have arrested 13 persons recently, the statement said.
By using data analysis and network analysis, the officers of CGST Mumbai zone have booked more than 625 tax evasion cases, detected tax evasion of Rs. 5,500 crore, recovered Rs. 630 Crore and have arrested more than 50 persons in the last five months, the statement said, adding that it was going to further intensify the drive.
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