GST authorities have arrested an alleged mastermind from Thane in an input tax fraud case ₹90.68 crores on Saturday. The accused has been sent to judicial custody till November 5.
“In a massive campaign launched against fraudsters availing and using fake Input Tax Credit (ITC), Thane Central GST Commissionerate, Mumbai CGST Zone has arrested a mastermind who opened a firm M/s. Doshi was working with Marketing and Bhayandar West. He fraudulently availed and utilized input tax credit ₹90.68 crore without receiving goods or services in contravention of the provisions of the CGST Act 2017,” a statement from the Ministry of Finance read.
The firm was dealing in the business of asbestos, cotton yarn, sewing thread etc. It had fraudulently taken credit of input tax showing the value of the goods ₹503.80 crore, the statement noted.
It was only a paper transaction without actual supply of goods and without filing of e-way bill, it further said.
“The mastermind accused was arrested under the provisions of the CGST Act 2017 and remanded to judicial custody till November 5 by the Judicial Magistrate First Class Court, Thane,” the official statement said.
In other two separate cases, Trimurti Gems and Nikita Trading & Co, working in Bhayandar area, were also found to be involved in fraudulently obtaining and passing input tax credit. ₹292 crores. These firms were not active and their registrations were cancelled.
The ministry said that cases have been registered against the accused and efforts are on to nab the mastermind in these cases as well.
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