Credit fraud

CGST uncovers Rs 81 input tax credit fraud, Cr Mumbai company director detained

The CGST Mumbai area has arrested the manager of a Navi Mumbai-based company who allegedly used and forwarded an input tax credit of Rs 81 crore using fake invoices to the tune of Rs 479 crore, an official said on Monday.

A CGST statement said that searches had been carried out at various locations acting on intelligence gathered by deploying data analysis tools, which revealed that Fantasia Trade Limited was allegedly engaging in irregularities under the Section 132 of the Central Goods and Services Tax Act 2017.

The director of the firm was arrested on February 18 and placed in police custody for 14 days, the statement said.

The statement said that the CGST Mumbai Zone had under a special program recorded more than 730 cases of tax evasion, detected tax evasion of Rs 6,380 crore, recovered around Rs 700 crore and arrested 56 people. over the past six months.

Lawyer Prasannan Namboodiri, representing Fantasia Trade Private Limited, said all transactions were genuine.

The department did not take note of the transport of material, the movement of goods, the payment of bills to carriers, warehouses, guards, etc. c) of the CGST law, which led to the arrest of the director, he said.


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