Navi Mumbai: Director of private firm arrested by CGST for Rs 19 cr tax fraud

A team of officers of Anti-Evasion, CGST, Navi Mumbai had conducted enquiry against the firm, engaged in Bitumen, Asphalt, Oil Shale and Tar Sand, etc. trading.

Somendra SharmaUpdated: Sunday, July 31, 2022, 07:24 PM IST
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The Navi Mumbai Central Goods & Services Tax (CGST) officials have arrested the Director of a private company on the charges of availing and utilising Input Tax Credit (ITC) which was received from bogus or fake entities amounting to Rs 19.51 crores. The agency officials suspect that the entire cartel of fake invoices was created to get the company listed for raising funds through equity. During the financial year 2021-22, the CGST Navi Mumbai Commissionerate detected GST evasion of Rs 543 crore, recovered Rs 41.47 crore and arrested 16 tax evaders.

A team of officers of Anti-Evasion, CGST, Navi Mumbai had conducted enquiry against the firm, engaged in Bitumen, Asphalt, Oil Shale and Tar Sand, etc. trading. The said firm has availed and utilized ITC of Rs 19.51 crores which has been received from bogus or fake entities on the strength of invoices amounting more than Rs 120 crore without supply of goods or services.

"In this case, two persons were already arrested in January, this year. However, the main beneficiary and the mastermind had been absconding for seven months till date to evade investigation proceedings. It appears that the entire cartel of fake invoices was created to get the company listed for raising funds through equity," said a CGST official.

As per the provisions of of the CGST Act, if taxpayer issues invoices and bills without supply of goods or services or both leading to wrongful availment or utilization of input tax credit, or avails input tax credit using such invoice or bill, the taxpayer is punishable with imprisonment for a term which may extend to five years and with fine, officials said.

The accused was produced before the Judicial Magistrate First class, Vashi at Belapur on Friday and has been sent to judicial custody for 14 days, informed Commissioner of CGST and Central Excise in Navi Mumbai, Prabhat Kumar.

The officers of the Central Intelligence Unit are using data analysis and network analysis tools to identify potential fraudsters and sharing the details with jurisdictional commissionerates for further investigation. This case is a part of the special drive launched by the CGST Mumbai Zone against the fraudsters and fake ITC network dealers.

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