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Mumbai: 2 held by CGST in separate cases of GST evasion

CGST officers are using data analysis and network analysis tools to identify potential fraudsters. Department is going to intensify the drive against tax evaders this financial year.

Staff Reporter | Updated on: Thursday, May 12, 2022, 11:16 PM IST

Mumbai: 2 held by CGST in separate cases of GST evasion | Photo: Representative Image
Mumbai: 2 held by CGST in separate cases of GST evasion | Photo: Representative Image
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Central Goods and Services Tax (CGST) Commissionerate of Mumbai Zone have busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Darukhana (Mumbai) based firm. Analysis of GST data indicated that the firm was allegedly indulging in GST evasion.

"Investigation revealed that M/s Aashiq Steel Industries, which deals in trading of steel and other metal products, was involved in fraudulent availment and passing of Input Tax Credit (ITC) of Rs 15 crore without receiving or supply of goods, in gross violation of the provisions of CGST Act. Bogus bills of around Rs 83 crore were issued for this tax fraud," the agency claimed in a statement on Thursday.

The owner was arrested and produced before Chief Metropolitan Magistrate on Wednesday. The court has remanded him to 14 days of judicial custody, officials claimed.

In another case, CGST Commissionerate, Mumbai West Zone had busted a fake ITC racket and arrested the proprietor of a Versova based company.

Acting on a tip off received from Central Intelligence Unit of CGST Mumbai Zone, an investigation was initiated against M/s NECIL Metal Dealers Pvt Ltd, which deals in the trading of ferrous metal and scrap. The company was allegedly involved in fraudulent availment and passing of ITC of Rs 10.01 crore without receiving or supply of goods, in gross violation of the provisions of the CGST Act. Bogus bills of around Rs 60 crore were issued for this tax fraud.

This operation is a part of efforts by CGST Mumbai Zone to stamp out fake ITC networks and tax evaders, which have been causing unhealthy competition with honest taxpayers and defrauding the Government Exchequer. As a part of these efforts, in the last financial year, CGST Mumbai Central Commissionerate unearthed fake ITC amounting to Rs 600 crore, recovered Rs 150 crore and arrested 11 tax evaders.

CGST officers are using data analysis and network analysis tools to identify potential fraudsters. Department is going to intensify the drive against tax evaders this financial year.

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Published on: Thursday, May 12, 2022, 11:16 PM IST