Mumbai, Jan 4 (PTI) A father-son duo has been arrested by the Central Goods and Services Tax department in connection with what is being called as a Rs 22-crore fake input tax credit (ITC) racket.

The duo are proprietors of M/s Shah Enterprises and M/s U S Enterprises, which are engaged in trading ferrous waste and scrap, according to an official statement on Tuesday evening.

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Acting on a tip-off from the Central Intelligence Unit of the Mumbai CGST Zone, officials from the Thane CGST Commissionerate arrested the duo – whose names were not shared – from suburban Kandivali on an unspecified date.

Both the firms were found to be availing fake ITC from fake entities and passing on the same to other entities of this vicious network, as per the statement.

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The statement said both the companies are registered with GST and were found to be indulging in fraudulent availment and passing of ITC to the tune of Rs 11.80 crore and Rs 10.23 crore, respectively, without receiving the goods or services.

After the arrest, they were produced before a local court which remanded them to a 14-day judicial custody.

The statement said the arrests are part of a large-scale operation to stamp out the fake ITC network which had been causing unhealthy competition and also defrauding the government, and warned that the department is going to intensify the same. HRS hrs

(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)