8 crore fake input tax credit racket uncovered in Thane, one arrested

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8 crore fake input tax credit racket uncovered in Thane, one arrested

Mumbai : The Thane Central GST Commissionerate has uncovered a fake GST input tax credit (ITC) racket and arrested the owner of a firm in Dahisar. Acting on the specific input of Central Intelligence Unit of CGST Mumbai Zone, the branch of CGST Thane Commissionerate sent Messrs. J.J. An investigation was launched against Lime Depot. The company was trading in construction materials. The firm had claimed an input tax credit of Rs 8.05 crore by falsifying its financial records. The firm had also issued bogus receipts amounting to over Rs 40 crore without supplying any goods in violation of the provisions of CGST Act, 2017. The owner of the firm has admitted that fake receipts were issued to several Mumbai-based infrastructure companies for commission.

He was arrested on 12.05.2022 under Section 69 of the CGST Act, 2017 for violating Section 132 of the CGST Act, 2017. He was produced before the Hon'ble Chief Metropolitan Magistrate, Esplanade on 13.05.2022. Magistrates have sentenced him to 14 days in judicial custody.

CGST officials are using data analysis and network analysis tools to identify potential fraudsters. In the financial year 2021-22, CGST Thane Commissionerate had detected GST evasion of Rs.1354 crore and recovered Rs.34 crore and arrested 7 tax evaders. CGST Commissionerate Thane will continue its campaign against tax evaders in this financial year also.