Credit fraud

Mumbai Woman Arrested for “Rs 9.95 Crore Input Tax Credit Fraud”

Central Goods and Services Tax (CGST), Bhiwandi police station, arrested a 49-year-old woman from Kharghar on Wednesday for allegedly claiming an input tax credit (ITC) of Rs 9.95 crore, on the basis of false receipts received from fictitious businesses.

A criminal case has been registered against the defendant, Nisha Munjal, under article 69 of the CGST law of 2017. She was arrested at her home in Kharghar and presented to a criminal court on Wednesday, which sent her in judicial detention for 14 days.

Munjal ran four companies, Dixa Fabrics, Ekta Fashions, Ridgewood industries and Pretty Women Fashion, according to sources. She was the owner in two of the firms and a director in the other two firms. Investigations showed that the four companies would not be operational at their registered premises in Bhiwandi.

The four companies allegedly used the ineligible ITC against false invoices (where no supplies from any supplier were physically received) and passed it on to other buyers who could have used it to claim a larger ITC . “Fraudulent activity causes serious loss to the treasury.

Further investigation to identify other crooks involved in tax evasion is underway, ”said Sumit Kumar, Commissioner, CGST and Central Excise, Bhiwandi.


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