The officers of Navi Mumbai CGST Commissionerate of Mumbai Zone have busted a pretend Enter Tax Credit score racket involving GST of Rs 70 Crores.
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It must be famous that this community concerned greater than 14 enterprise entities and was unfold throughout Mumbai, Navi Mumbai, Raigad, Thane, Pune and Nagpur cities had issued bogus invoices greater than Rs 385 crores with none receipt or provide of products.
Whereas performing on a tip off from Central Intelligence Unit, Mumbai CGST Zone, the officers have arrested two businessmen, said the discharge from the Workplace of the Principal Chief Commissioner of CGS, T& Central Excise, Mumbai Zone.
One of many arrested businessman is a director of All-powerful Industries Restricted which has floated a public difficulty lately and one other one is proprietor of Shree Bitumax Buying and selling.
Each the entities are registered with GST for buying and selling in Bitumen, Asphalt, Oil Shale and Tar Sand and many others. and have been indulging in fraudulent availment and passing of Enter Tax Credit score (ITC) of Rs 20.75 crores and Rs. 11.31 crores respectively with out receiving the products or companies, in violation of the provisions of the CGST Act 2017, as per the press launch. Each these companies have been availing pretend ITC from non-existing entities and passing on the identical to different entities of this vicious community. Different 12 entities have availed and handed on pretend ITC to the tune of Rs 38 crores.
One should be aware that each the Director and proprietor have been arrested underneath Part 69 of CGST Act 2017 for contravention of Part 132 ibid and was produced earlier than the Judicial Justice of the Peace Top notch, Vashi, who has remanded them to 14 days judicial custody.
All-powerful Industries bought its public itemizing in November 2021 and risk of misuse of funds, generated from pretend ITC community, for different monetary positive factors can also be not dominated out. Additional investigation is underneath progress and different enforcement businesses may even be told about their nefarious actions.
The operation is part of particular anti-tax evasion drive initiated by the CGST Mumbai Zone. On this particular drive, a educated set of officers is utilizing information analytics and community evaluation instruments to establish pretend ITC networks and potential circumstances of tax evasion. Throughout this 4 month previous drive, greater than 500 tax evasion circumstances have been booked resulting in arrest of 40 individuals, detection of tax evasion of Rs. 4550 crores and tax restoration of Rs. 600 crores.
On this context, it must be remembered that lately, on January 3, 2022, the officers of Thane CGST Commissionerate had arrested a father-son duo for operating a pretend ITC community of Rs. 22 crores. On January 5, 2022, the officers of Mumbai Central Commissionerate had arrested a timber service provider, the proprietor of M/s Noor Timber for availing pretend ITC of Rs. 5.47 crores from non-existing entities.