Central GST evasion: Mumbai firm booked for availing Input Tax Credit on bogus invoices

Officers with the Central Goods and Services Tax (CGST) Bhiwandi Commissionerate in the Mumbai zone have booked a company for fraudulently availing Input Tax Credit (ITC) on bogus invoices. A partner of the company was also arrested Tuesday.

According to the officers, the firm, M/s Laxmi Metal and Co, availed ITC worth Rs 8.41 crore on bogus invoices of Rs 45.22 crore.

“Based on material evidence gathered during investigation we found out that the firm has been dealing in ferrous and non-ferrous metal scrap trading. They have fraudulently availed ITC amounting to Rs. 8.41 crore on the basis of fake /ineligible invoices of Rs 45.22 crore issued by non- existent/ fake/non- genuine firms, who were issuing invoices to the said firm without movement of any goods,” said Sumit Kumar, commissioner of CGST Bhiwandi Commissionerate, Mumbai zone.

A partner of the firm was arrested under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. He was produced before a magistrate court and sent to judicial custody till September 24.

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This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. So far, CGST Bhiwandi Commissionerate has arrested 18 persons in the last one year.

“We are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against the tax evaders in the coming days,” Kumar said.