In a recent crackdown, the Officers of Thane CGST Commissionerate of Mumbai Zone have busted a fake Input Tax Credit racket. The racket involved a GST of Rs 22 Crores. On a specific tip-off from Central Intelligence Unit, Mumbai CGST Zone. The CGST officers have arrested two businessmen who happen to be father and son. Both father and son are the proprietors of two separate firms’ messers Shah Enterprises and, messers U.S. Enterprises which is located at Kandivali West, a western suburb of Mumbai.
Both the firms are registered with GST for trading in Ferrous Waste and Scrap etc. and were indulging in fraudulent availment and passing of Input Tax Credit (ITC) to the tune of Rs 11.80 crores and Rs. 10.23 crores respectively, without receiving the goods or services in reality. It falls in violation of the provisions of the CGST Act 2017. Both these firms were availing fake ITC from the fake entities and passing on the same to other entities of this vicious network.
On finding a complete violation of the government’s rules, both father and son were arrested under Section 69 of CGST Act 2017 for contravention of Section 132 ibid. They were produced before the Hon’ble Chief Metropolitan Magistrate Esplanade, Mumbai. The honorable court remanded them to 14 day’s judicial custody.
This operation had been a part of a large-scale operation launched by the CGST Mumbai Zone to stamp out the fake ITC network which had been causing unhealthy competition with Honest Taxpayers and defrauding the Government Exchequer of its rightful taxes. The department is going to intensify the drive against fraudsters and tax evaders in the days to come.
The CGST Thane unit has expanded its network of investigation and informers to keep a vigilant eye on a day-to-day basis to unearth illegal tax fraud. A senior officer from Thane CGST on the condition of anonymity said “We are contemplating all means to unearth illegality in cheating in taxes. We have a team of officers who are working round the clock and visiting various areas to crack tax robbery. We are raiding the places wherever we get wind of illegal tax violations in CGST recovery.
Editor in Chief : Mewati SItaram
