Firm proprietor held by GST dept for Rs 8 cr tax evasion

THE THANE Central Goods and Services Tax (CGST) unit unearthed a fake input tax credit (ITC) racket and arrested the proprietor of a Dahisar-based firm on May 12, for fraudulently claiming Rs 8.05 crore in tax credit.

The department found that JJ Lime Depot — a company trading in construction material — had issued bogus invoices of over Rs 40 crore for passing on fake tax credits without any supply of goods in violation of provisions of the CGST Act, 2017.

“In his statement, recorded during the investigation, the firm’s proprietor admitted that he had issued fake invoices to many Mumbai-based infrastructure companies for commission,” said the department in a statement.

The proprietor was arrested under Section 69 of the CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017, said the tax
authority. He has been remanded to judicial custody for 14 days.

During the financial year 2021-22, the CGST Thane Commissionerate detected GST evasion of Rs 1,354 crore and recovered Rs 34 crore.

Seven tax evaders were also arrested, said the department.

“In the last financial year (2021-22) revenue realised was Rs 5,121.16 crore compared to Rs 3,236.77 crore during the financial year (2020-21), which is an increase of Rs 1,884.39 crore in absolute terms and 58.22 per cent increase compared to the previous year,” said Rajan Chaudhary, Commissioner, Thane CGST.