CGST busts fake ITC racket of Rs 10.68 crore in Mumbai, one arrested
India Today
The firm, Navnit Steels, allegedly availed and utilised a fraudulent ITC on bogus invoices worth Rs 60 crore, thereby defrauding the government exchequer.
The Central Goods & Services Tax (CGST) Commissionerate, Navi Mumbai busted a fake ITC racket of Rs 10.68 crore and arrested the proprietor of Navnit Steels on Wednesday.
The firm allegedly availed and utilised a fraudulent Input Tax Credit (ITC) on bogus invoices worth Rs 60 crore, thereby defrauding the government exchequer.
A team of officers of Anti-Evasion under CGST, Navi Mumbai conducted an enquiry against the aforesaid firm.
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As per the statement of the proprietor, the said firm is involved in the trade of raw materials and finished goods of aluminium and steel.
However, the investigation revealed that the taxpayer availed and passed on fake ITC from various non-existing/bogus firms.
"A person has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1) (b) &(c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur on Thursday. He was later sent to judicial custody for 14 days," said Commissioner, CGST and Central Excise, Navi Mumbai Shri Prabhat Kumar.
