India News | Director of Private Firm in Navi Mumbai Held for Input Tax Credit Fraud
Get latest articles and stories on India at LatestLY. The director of a private firm in Navi Mumbai was arrested on Wednesday for allegedly availing and passing on fake Income Tax Credit (ITC) on bogus invoices amounting to Rs 181.67 crore, officials said.
Thane, Sep 7 (PTI) The director of a private firm in Navi Mumbai was arrested on Wednesday for allegedly availing and passing on fake Income Tax Credit (ITC) on bogus invoices amounting to Rs 181.67 crore, officials said.
The director of Robosteel Trading Pvt Ltd was arrested by Central Goods and Services Tax (CGST) Commissionerate Navi Mumbai, an official release said.
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A team of officers of anti-evasion wing of the CGST Commissionerate conducted an inquiry against the firm for allegedly availing and utilising ITC of Rs 181.67 crore through bogus/fake entities (availed Rs 87.84 crore and passed on Rs 94.19 crore). The total amount of bogus invoices involved is Rs 1,075.37 crore without the actual supply of goods or services.
As per the provisions of Section 132 (1) (b) and (c) of the CGST Act, 2017, if a taxpayer issues invoices or bills without the supply of goods or services or both leading to wrongful availment or utilisation of ITC or avails ITC using such invoice or bill, then this offence is punishable with imprisonment for a term that may extend to five years and with fine.
The accused was arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for the offence and was produced before the Judicial Magistrate First Class (JMFC), Vashi at Belapur and was sent on judicial custody for 14 days.
This case is part of anti-evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders. As part of this drive, Navi Mumbai Commissionerate has detected tax evasion of Rs 600 crore, recovered Rs 20 crore and arrested 18 persons recently.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)