GST official bust fake tax credit racket

Goods and Services Tax (GST) officials have bust a tax credit racket and arrested the proprietor of a metal trading firm, the finance ministry said in a statement.

Officials of the Central GST Commissionerate in Navi Mumbai detected that the firm engaged in trading of scrap of ferrous, aluminum, copper and other metals allegedly availed of and passed on input tax credit fraudulently on the basis of bogus invoices of more than Rs. 60 crore, the statement said.

A team of officers held an enquiry into the firm and arrested the proprietor for alleged offences under CGST Act. He was produced before a magistrate and has been sent on judicial custody for 14 days, the statement said quoting Prabhat Kumar, commissioner of CGST and Central Excise at Navi Mumbai.

The regulatory action in this case is a part of an anti-evasion drive by the Mumbai Zone officials, the statement said. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of more than Rs. 450 crore and recovered Rs. 20 crore and arrested 12 persons recently, it said.