The Central Goods & Services Tax (CGST) officials have smashed a fake Input Tax Credit (ITC) racket and arrested the proprietor of a Kalamboli based firm M/s Ashok Metal Scrap.
The firm was allegedly engaged in availing and passing on of fake GST ITC of Rs 12 crore, by using bogus invoices of more than Rs 64 crores.
In another case, the Maharashtra State Goods & Services Tax (SGST) officials on Thursday arrested the Director of M/s. Everant Feromat Private Limited under the charges of accepting bogus invoices of Rs 162 crore and thereby allegedly availing a fake ITC of Rs 29.17 crore.
Based on a tip-off from the Central Intelligence Unit (CIU) of CGST Mumbai zone, a team from Anti-Evasion Wing initiated an investigation, which revealed that this firm had availed fake ITC on the basis of bogus invoices issued by more than 20 non-existing firms and passed this fake ITC to other firms.
"The proprietor of the firm evaded the investigation proceedings and was absconding since October 2021. He was traced after a continuous vigil at various locations in Mumbai and Rajasthan. The accused was arrested on Thursday and was produced before the court which remanded him to 14 days judicial custody," said a CGST official.
This case is a part of a special Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer.
Raigad Commissionerate has detected tax evasion of Rs 675 crore and recovered Rs 403 crore and arrested 8 persons in the financial year 2021-22.
The CGST department is using data analytics and network analysis tools to identify tax evaders and the department is going to intensify its drive against the fraudsters and tax evaders in the coming days and months.
