Mumbai-based businessman arrested for availing fake GST input tax worth Rs 7.11 cr

The accused was produced before Additional CMM court and has been sent to judicial custody for 14 days.

The Anti-Evasion wing of CGST (c), Mumbai South on Saturday arrested the partner of a firm, Rushabh Bullion, a trader of gold and silver articles for availing fake GST Input Tax Credit (ITC) amounting to Rs. 7.11 crores from fake or non-existent entities.

The investigation in this case was undertaken based on inputs provided by the Central Intelligence Unit (CIU) of Mumbai Zone at the zonal headquarters headed by the Principal Chief Commissioner.

“The partner of Rushabh Bullion in his statement admitted to availing ineligible ITC amounting to Rs 7.11 crores from two entities, Goldmine Bullion and Riddhi Siddhi Gold who were found to be fake or non-existent upon verification of their principal place of business. The fake ITC availed by Rushabh Bullion from Goldmine Bullion and Riddhi Siddhi Gold was Rs 4.89 crores and Rs 2.22 crores respectively,”said the officials.

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Based on evidence collected during the investigation and statement, the arrest was made under Section 69 of the CGST Act, 2017 for committing offences under Section 132(1)(c) read with Section 132(5) of CGST Act, 2017.

The accused was produced before an Additional CMM court and has been sent to judicial custody for 14 days.

This case is a part of the Anti-Evasion drive launched by CGST, Mumbai Zone against tax evaders. As a part of this drive, CGST Mumbai South Commissionerate has detected tax evasion of more than Rs 570 crores, recovered Rs 7 crores and arrested eight persons during the last six months.