GST officials arrest executive for tax credit fraud
NEW DELHI : Goods and Services Tax (GST) officials have arrested the director of a Mumbai-based chemical trading company over alleged irregularities related to input tax credit, the finance ministry said on Friday .
The company executive appeared in a local court and was taken into custody until March 23, the ministry said. The investigation showed that this company was involved in misusing tax credits and passing credits to other businesses without receiving or delivering goods, according to the statement.
The arrest is part of Central GST Mumbai Zone’s efforts to root out bogus input tax credit schemes and tax cheats, which have caused unhealthy competition with honest taxpayers and defrauded the public purse, the ministry said.
Central GST, Mumbai West Commissionerate unearthed fake input tax credit amounting to around Rs. 397 crore and recouped around Rs. 29 crore and arrested four people in the last six months, according to the release .
The ministry will step up its fight against tax evaders in the coming days, with no tolerance for tax credit fraud, the ministry said.
Authorities have widely used data on electronic transport bills, information entered at toll booths on shipments of goods, and information provided in tax returns to identify inconsistencies in claims and detect cases of tax evasion. . The increasing formalization of the economy and the monitoring of transactions in the economy through digital tools are helping authorities to make tax administration more efficient and intensify tax collection.