GST officials bust fake invoice racket

 








Goods and Services Tax (GST) officials in Mumbai have arrested a person for allegedly using and passing on fake tax credits to other businesses using bogus invoices of ₹479 crore, said an official statement.

The statement said that the arrested person was the director of a company in Navi Mumbai, who has now been remanded to Judicial custody for 14 days by a magistrate. The arrest was part of a special anti-evasion drive launched by the Mumbai zone officials, said the statement.

Acting upon intelligence from data analytics tools, searches were conducted at various locations including the business premises of the firm and its transporter leading to recovery of certain incriminating documents, the statement said.

Investigation revealed that there was no movement of traded goods. Evidence recovered during the operation showed that breach of law was being committed with full disregard to the statutory provisions, with an intention to defraud the government of its revenue, the statement said, adding that it was a non-bailable offence.

This operation is a part of efforts by CGST Mumbai zone to eradicate fake input tax credit networks, which have been vitiating the healthy economic ecosystem and defrauding the exchequer, the statement said.

As a part of the anti-evasion drive, the CGST Mumbai Zone has booked more than 730 cases of tax evasion, detected tax evasion of Rs. 6,380 Crore, recovered around Rs. 700 crore and arrested 56 persons, in the last six months, it said.

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