Credit fraud

GST officials arrest owner in 6.46 cr input tax credit fraud


CGST and Central Excise officials arrested the owner of the company implicated in an input tax credit fraud to the tune of 6.46 crore. The investigation is ongoing and the amount defrauded is likely to increase as it progresses, the finance ministry said in a statement on Sunday.

“An arrest was made by CGST and Central Excise officers from the Mumbai Central Police Station in connection with an ongoing investigation into the receipt and provision of an ineligible input tax credit. ‘an amount of ??6.46 crores. The provision was made by M / s SR Enterprises against false invoices issued by various non-existent / false / fictitious companies without actual receipt of the goods, “the ministry said.

The investigation showed that this company used the ineligible input tax credit (ITC) against false invoices, when no supplies from any supplier were physically received, and passed on to other buyers.

“In this regard, a search and inspection was carried out by the CGST and Central Excise anti-escape team, from the Mumbai Central Police Station to the owner’s office and raid and after detailed interrogation, a person who owned the company was arrested on September 24. , 2021 under Article 69 of the CGST Act 2017 and the relevant provisions of the CrPC for the use of an ineligible amount of ITC of ??6.46 crore and was produced before the Additional Chief Metropolitan Magistrate, Fort, Mumbai, ”the statement said.

The accused has been taken into custody for 14 days as authorities continue to investigate further to identify other crooks involved in tax evasion. This is the second arrest by CGST and Mumbai Central Excise officials in the past 2 days.

The ministry has launched a campaign against fake bill fraudsters who attempt to defraud the treasury and lead to unhealthy competition with honest taxpayers. This is a step to underscore the department’s commitment and support to honest taxpayers.

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