Exporter arrested for fraudulently claiming GST ITC of ₹15.26Cr

The Anti-Evasion Wing of Central Goods and Service Tax (CGST), Thane commissionerate of Mumbai Zone, has arrested an exporter, who is also a director of a private company, for fraudulently claiming GST Input Tax Credit (ITC) of ₹15.26Cr; this ITC was claimed on the basis of bogus invoices of ₹85Cr issued by fake entities

The Anti-Evasion Wing of Central Goods and Service Tax (CGST), Thane commissionerate of Mumbai Zone, has arrested an exporter, who is also a director of a private company, for fraudulently claiming GST Input Tax Credit (ITC) of ₹15.26Cr.

Exporter arrested by the Anti-Evasion Wing of CGST, Thane commissionerate of Mumbai Zone, for fraudulently claiming GST Input Tax Credit of ₹15.26Cr. (HT FILE)

This ITC was claimed on the basis of bogus invoices of ₹85Cr issued by fake entities.

Rajan Chaudhary, commissioner of CGST, Thane, said, “Investigations into this Borivali-based company 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.

“The exporter, who is also the director of the company, was arrested on Thursday under Section 69 of CGST Act 2017 for contravention of Section 132(b) and 132(c) of CGST Act 2017 and 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.”

CGST Thane Commissionerate, in its anti-tax evasion drive, has detected tax evasion of ₹1,238Cr, recovered ₹20Cr and arrested seven persons during the last six months.