Raids in Navi Mumbai unearth tax fraud of Rs 21 crore
India Today
Central Goods and Services Tax (CGST) Commissionerate in Navi Mumbai has busted a racket of fake Input Tax Credit (ITC) invoices worth Rs 21 crore. The owner of the firm has been arrested for tax fraud.
The Central Goods and Services Tax (CGST) Commissionerate in Navi Mumbai has busted a racket of fake Input Tax Credit (ITC) invoices worth Rs 21 crore and arrested the owner of a firm on Wednesday.
The firm - Shree Ram Enterprise - traded in metal scraps, the arrested owner said in a statement to the authorities.
The company would avail, use and pass on fraudulent Input Tax Credit (ITC) on bogus invoices of around Rs 100 crore from several non-existent firms, the tax body has said.
The accused has been arrested under relevant sections of the Central Goods and Services Act, 2017 for fraudulently availing Input Tax Credit without invoices and for issuing bills without providing any goods or services, leading to wrongful utilization of the Input Tax Credit. He was produced before the court on Wednesday and sent to judicial custody for 14 days.
The anti-evasion drive has been launched by the CGST, Mumbai Zone against tax evaders creating unhealthy competition for compliant taxpayers and defrauding the government.
As part of this, Navi Mumbai Commissionerate has detected tax evasion of about Rs 500 crore, recovered Rs 20 crore, and arrested 13 recently.
Officers of CGST’s Mumbai zone, with various data analysis tools developed to identify tax evaders, have filed over 625 tax evasion cases, detected tax evasion of Rs 5,500 crore, recovered Rs 630 crore, and arrested over 50 people in the last five months, officials told India Today TV, adding that they are aiming to intensify the drive.
