CGST Commissionerate of Mumbai busts fake GST Input Tax Credit racket, one businessman arrested

Pune, Jan 20 (Agency) The officers of Mumbai West CGST Commissionerate of Mumbai Zone have recently busted an alleged fake GST Input Tax Credit racket involving GST of Rs 10.10 crore and arrested a businessman in this connection. Acting on a tip-off, a team of Central Intelligence Unit, Mumbai CGST Zone, have arrested a businessman who is the director of M/s Necil Metal Dealers Pvt Ltd located at Versova, Mumbai. The firm, which was trading in ferrous waste and scrap, was found allegedly indulging in fraudulent availment and passing of Input Tax Credit (ITC) to the tune of Rs 10.10 crore without receiving the goods or services, in gross violation of the provisions of CGST Act, a press release issued by Press Information Bureau here on Thursday said.

The director was arrested under section 69 of CGST Act for contravention of section 132 of CGST Act. He was today produced before the Metropolitan Magistrate court, which has remanded him to judicial custody till February 2. Further investigation is under progress. This operation is a part of large-scale effort by CGST Mumbai Zone to stamp out fake ITC networks, which have been causing unhealthy competition with honest taxpayers and defrauding the Government Exchequer of its rightful taxes. As a part of this mammoth exercise, Mumbai West has unearthed fake ITC amounting to Rs 187.20 crore and recovered Rs 13.25 crore in the last six months, the release added.