Local firm in Mumbai booked for GST evasion of Rs 78 crore

The CGST Bhiwandi Commissionerate in Mumbai Zone registered a case against a private firm for non-payment of the GST. The firm evaded the GST, amounting to Rs 78 crore.

The CGST Bhiwandi Commissionerate in Mumbai booked a case against a local firm for non-payment of the GST (Goods & Service Tax) and fraudulently claiming the Input Tax Credit (ITC).

A case was registered against M/S AS Agri and Aqua LLP for irregularities in the GST payment amounting to Rs 78 crore.

Officials said that earlier, three partners of the same firm were arrested on August 7 and were later sent to judicial custody till October 4.

According to the officials, one more partner was arrested on September 23 under Section 69 of the CGST Act, 2017, for contravention of Section 132 of the CGST and had been sent to judicial custody till October 6.

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The firm was reported not to have discharged the GST liability amounting to Rs 53 crore against advance payments amounting to Rs 292 crore received from the contract services that included the construction of poly houses, which is taxable under Section 13(2)(b) of the CGST Act, 2017.Reportedly, M/S AS Agri and Aqua LLP had fraudulently availed an ITC amounting to Rs 25 crore on the work contract services for the construction of an immovable property, which is exempted under the provisions of Section 17(5)(c) of the CGST Act, 2017.The firm had a total outstanding of Rs 78 crore to date, of which the firm had voluntarily discharged the GST liability of Rs 35 crore. The case registered against the firm is a part of the CGST Mumbai Zone’s special drive launched against tax fraudsters and fake ITC networks.So far, the CGST Bhiwandi Commissionerate has arrested 19 people in the past one year.

The CGST officers have been using data analysis and network analysis tools to identify and trace potential fraudsters. The drive against tax evaders is likely to intensify in the coming days.