Thane CGST arrests one in Input Tax Credit fraud of Rs 90.68 crore

Mumbai (Maharashtra) [India], October 23 : In a major drive initiated against fraudsters who are availing and utilizing fake Input Tax Credit (ITC), Thane Central GST Commissionerate, Mumbai CGST Zone has arrested a mastermind who had opened a firm M/s. Doshi Marketing and was operating from Bhayandar West.
According to a statement issued by the CGST Commissionerate on Saturday, the arrested accused indulged in fraudulent availed and utilised Input Tax Credit to the tune of Rs 90.68 crore without receiving the goods or services in violation of the provisions of CGST Act 2017.
His firm was dealing in trading of Asbestos, cotton yarn, sewing thread etc and had fraudulently taken credit of Input Tax showing the value of goods amounting to Rs 503.80 crore. This was a paper transaction only without an actual supply of goods and without the filing of E-way bills.
The accused was arrested under provisions of CGST Act 2017 and was remanded to judicial custody till November 5 by JMFC Court Thane.
"In another two separate cases, M/s. Trimurti Gems and M/s.Nikita Trading & Co. operating in the Bhayander area have fraudulently claimed Input Tax Credit amounting to Rs 292 crore and they have also been booked. These firms were not active and their registration had been cancelled. Efforts are on to nab the masterminds in these cases also," said the statement.
Further investigation is underway.