Export firm director arrested for GST fraud of over Rs 15 crore

 







The anti-evasion wing of the Thane CGST (Central Goods and Services Tax) Commissionerate of Mumbai zone has arrested a director of an export firm for fraudulently claiming GST Input Tax Credit (ITC) of Rs 15.26 crore. This ITC was claimed on the basis of bogus invoices of Rs 85 Crore issued by the fake entities.

Based on inputs received from Delhi Customs and further developed by Officers of Thane Commissionerate, an investigation was initiated against Corvette Tradelink Pvt Ltd in Borivali. Investigation revealed that this firm was engaged in export of footwear and had availed GST Input Tax Credit fraudulently on the basis of bogus invoices issued by non-existent fake entities from Delhi.

The company had used this fake ITC for payment of IGST for exports through ICD Tughlakabad, Delhi and had subsequently claimed IGST refund from Indian Customs on the fake ITC so used.

A director of the said company was arrested on March 3, under Section 69 of CGST Act 2017 for contravention of Section 132(b) and 132(c) of CGST Act 2017. He was produced before Chief Metropolitan Magistrate, Mumbai.

The accused was sent to judicial custody for 14 days by the magistrate. If proved guilty, he shall face imprisonment up to 5 years and fine.

The case is part of anti-evasion drive launched by CGST, Mumbai zone against the tax evaders and fraudsters. CGST Thane Commissionerate has detected tax evasion of Rs 1238, recovered Rs 20 crore and arrested 7 persons in the past last six months.

The CGST department is using data-mining, data analysis, and network analysis tools to identify potential tax evaders and fraudsters. The department is focusing on all sectors of economy, including service sector, exports, imports, and digital economy, to identify tax evaders who have been causing unfair competition for honest and compliant tax payers.

The department is going to intensify this anti-evasion drive in the coming days and months.

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