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Mumbai: CGST officials bust fake ITC racket, recover Rs 13.25 crores; businessman held

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, Mumbai.

Somendra Sharma | Updated on: Thursday, January 20, 2022, 06:54 PM IST

Representative Photo |
Representative Photo |
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The officers of Central Goods and Services Tax (CGST) have busted a fake GST Input Tax Credit (ITC) racket involving GST of Rs 10.10 crores. The CGST officials in Mumbai Zone have unearthed fake ITC amounting to Rs 187.20 crores and recovered Rs 13.25 crores in the last six months.

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, Mumbai.

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 10.10 crores without receiving the goods or services.

The Director was arrested and was produced before the, Esplanade, Mumbai on Thursday Which has remanded him to 14 days judicial custody till February 2, 2022.

"This operation is a part of large-scale effort by CGST Mumbai Zone to stamp out fake ITC networks, which have been causing unhealthy competition with Honest Taxpayers and defrauding the Government Exchequer of its rightful taxes. 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 for GST evasion and ITC frauds," said a CGST official.

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Published on: Thursday, January 20, 2022, 06:54 PM IST