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GST Mumbai Officials Bust A Case Of Non-payment Of GST & Fraudulent Availment Of ITC, 3 Partners Arrested

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CGST Bhiwandi Commissionerate in Mumbai Zone based upon a specific intelligence has busted a case of non-payment of GST and fraudulent availment of Input Tax Credit, amounting to Rs. 78 Crore against M/S A S Agri and Aqua LLP having GSTIN 27ABLFA4344D1ZM. Based on material evidence gathered during investigation, 3 partners of said firm were arrested on 07.08.2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017, who established the firm (along with 16 other partners) and they were sent to judicial custody till 12.08.2022.

The said firm has not discharged the GST liability amounting to Rs. 53 Cr. on Advance payments amounting to Rs. 292 crore received from the recipients of Work Contract Services for construction of poly houses, which is taxable under Section 13(2)(b) of CGST Act, 2017. Further, the said firm has fraudulently availed ITC amounting to Rs. 25 Cr on the Work Contract Services for construction of immovable property, which is not available under the provisions of Section 17(5)(c) of the CGST Act, 2017.

This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. So far, CGST Bhiwandi Commissionerate has arrested 14 persons in last one year itself.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against the tax evaders in the coming days.


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TaxGyata Team

TaxGyata Team