The officers of Central Goods and Services Tax (CGST) have busted a fake GST Input Tax Credit (ITC) racket involving a GST of Rs 10.1 crore.
In the last six months, the CGST officials in Mumbai Zone have unearthed fake ITC's amounting to Rs 187.2 crore and recovered Rs 13.25 crore.
Acting on a tip-off from Central Intelligence Unit, the officers have arrested a businessman who is the Director of M/s Necil Metal Dealers Pvt Ltd located at Versova.
The firm is registered with GST for trading in Ferrous Waste and Scrap etc. It was indulging in fraudulent availment and passing of ITC to the tune of Rs 10.1 crores without receiving the goods or services.
The Director was arrested and was produced before the Esplanade Court, Mumbai on Thursday which has remanded him to 14 days judicial custody till February 2. "The department is going to intensify the drive against the fraudsters and tax evaders in the days to come with prompt action and zero tolerance.”