A father and son duo, owner of two different firms M/s Shah Enterprises and M/s US Enterprises based in Kandivali West, Mumbai were arrested.
A fake input tax credit racket involving GST of ₹22 crore was busted by the office of Thane CGST Commissionerate, Mumbai Zone.
Acting on a tip-off from Central Intelligence Unit, Mumbai CGST Zone, a father and son duo, owner of two different firms M/s Shah Enterprises and M/s US Enterprises located at Kandivali West, Mumbai were arrested.
Both the firms are registered with GST for trading in ferrous waste and scrap and were fraudulently availing ITC of ₹11.80 crore and ₹10.23 crore respectively without receiving goods or services, in violation of the provisions of CGST Act 2017. . Both these firms were taking advantage of fake ITC from fake entities and passing them on to other entities of this network.
Both were arrested under section 69 of the CGST Act 2017. He was produced before the Chief Metropolitan Magistrate Esplanade, Mumbai on Tuesday and sent to judicial custody for 14 days.
The operation was part of a massive exercise initiated by CGST, Mumbai Zone, to stamp out fake ITC networks, creating unhealthy competition with honest taxpayers and defrauding the exchequer with their rightful taxes. Had been. The department will intensify the campaign against fraudsters and tax evaders in the coming days.
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