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GST Mumbai: One businessman arrested for running a fake Input Tax Credit racket

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The officers of Mumbai West CGST Commissionerate of Mumbai Zone have busted a fake GST Input Tax Credit racket involving GST of Rs 10.10 Crores. Acting on a tip-off from Central Intelligence Unit, Mumbai CGST Zone, the officers have arrested a businessman who is the Director of M/s Necil Metal Dealers Pvt. Ltd. located at Versova, Mumbai. The firm is registered with GST for trading in Ferrous Waste and Scrap etc. It was indulging in fraudulent availment and passing of Input Tax Credit (ITC) to the tune of Rs 10.10 Crores without receiving the goods or services, in gross violation of the provisions of CGST Act 2017.

The Director was arrested under Section 69 of CGST Act 2017 for contravention of Section 132 of CGST Act 2017 and produced before the Hon’ble Additonal Chief Metropolitan Magistrate, Esplanade, Mumbai today and who has remanded him to 14 days’ judicial custody till February 2, 2022.

Further investigation is under progress.

This operation is a part of large-scale effort by CGST Mumbai Zone to stamp out fake ITC networks, which have been causing unhealthy competition with Honest Taxpayers and defrauding the Government Exchequer of its rightful taxes. As a part of this mammoth exercise, Mumbai West has unearthed fake ITC amounting to Rs. 187.20 Crores and recovered Rs. 13.25 Crores in the last six months. The department is going to intensify the drive against the fraudsters and tax evaders in the days to come with prompt action and zero tolerance for GST evasion and ITC frauds.


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TaxGyata Team

TaxGyata Team