GST officials arrest executive for tax credit fraud

 








Goods and Services Tax (GST) officials have arrested director of a Mumbai-based chemical-trading company for alleged irregularities related to input tax credit, the finance ministry said on Friday.

The company executive was produced in a local court and has been sent to judicial custody till 23 March, the ministry said. Investigation showed that that this company was involved in wrongful use of tax credits and passing on credit to other firms without receiving or supplying goods, the statement said.

The arrest is part of Central GST Mumbai Zone’s efforts to stamp out fake input tax credit networks and tax evaders, which have been causing unhealthy competition with honest taxpayers and defrauding the exchequer, the ministry said.

Central GST, Mumbai West Commissionerate has unearthed fake input tax credit amounting to about Rs.397 crore and have recovered about Rs. 29 crore and have arrested four persons in the last six months, the statement said.

The Department is going to intensify its drive against tax evaders in the days to come with no tolerance for tax credit related frauds, the ministry said.

The authorities have been extensively using data on e-way bills, information captured at toll booths about goods shipments and the information furnished in tax returns to identify mismatches in claims and detect cases of tax evasion. The increasing formalisation of the economy and surveillance of transactions in the economy through digital tools are helping the authorities to make tax administration more efficient and scale up tax collection

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