Mumbai: Director of pvt firm arrested in Rs 81 crore GST fraud case

Mumbai: The officials of Central Goods & Services Tax (CGST) Mumbai Zone has arrested one of the Directors of M/s Fantasia Trade Pvt. Ltd, Navi Mumbai for availing and passing on of inadmissible fake Input Tax Credit (ITC) of Rs 81 crore by using bogus invoices of Rs 479 crore.

Acting upon the intelligence developed by using Data Analytics tools, searches were conducted at various locations including business premises of the firm and the premises of its transporter. Certain incriminating documents were recovered and seized during the searches.

"Investigation revealed that M/s Fantasia Trade Pvt. Ltd. was acting on the behest of M/s. Arch Pharmalabs Ltd, Mumbai and there was no movement of traded goods. On the basis of material evidences gathered during investigation it became clear that prima facie offence was being committed with full disregard to the statutory provisions, with an intention to defraud the Government of its due revenue," the agency claimed in a statement.

"The investigation revealed a cognizable and non-bailable offence of availment and utilisation of ineligible ITC of Rs 81 crore. Accordingly, the Director of M/s Fantasia Trade Pvt. Ltd was arrested on February 18 and was produced before the court which remanded him to 14 days judicial custody," the statement added.

According to the CGST, this operation was part of efforts by CGST Mumbai Zone to eradicate fake ITC networks, which have been vitiating the healthy economic ecosystem of the country and defrauding the Government Exchequer. The CGST department is using data analytics and network analysis tools to identify tax evaders.

"As a part of a special drive, the CGST Mumbai Zone has booked more than 730 cases of tax evasion, detected tax evasion of Rs. 6380 Crore, recovered around Rs. 700 Crore and arrested 56 persons, in the last six months. Department is going to intensify its drive against the fraudsters and tax evaders in the coming days and months," the statement added.