Mumbai footwear exporter nabbed for Rs 15 crore GST fraud
The CGST Thane Commissionerate, Mumbai Zone, have arrested a footwear exporter for fraudulently claiming GST input tax credits (ITC) of Rs 15.26 crore, a top official said here on Friday.
IANS
Mar 4, 2022 10:34
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Mumbai, March 4 (IANS) The CGST Thane Commissionerate, Mumbai Zone, have arrested a footwear exporter for fraudulently claiming GST input tax credits (ITC) of Rs 15.26 crore, a top official said here on Friday.
The ITC was claimed on the basis of bogus invoices of Rs 85 crore issued by the fake entities to the company, said CGST Commissioner Rajan Chaudhary.
Based on inputs received from Delhi Customs and further tracking by Thane CGST Commissionerate sleuths, a detailed investigation was launched against Corvette Tradelink Pvt Ltd, Borivali.
Investigation revealed that this firm was engaged in export of footwear and had availed GST Input Tax Credit fraudulently on the basis of bogus invoices issued by non-existent entities from Delhi.
The Mumbai-based company used the fake ITC for payment of IGST for exports through ICD Tughlakabad, Delhi and subsequently claimed IGST refund from the Customs.
One director of the company has been arrested Thursday under various sections of the CGST Act, 2017 and remanded to 14 days judicial custody on Friday by the Chief Metropolitan Magistrate Court, for the offences which can attract a five-year jail term plus fine.
Chaudhary said the case is part of an ongoing "Anti-Evasion" drive launched by CGST, Mumbai Zone against the tax evaders and fraudsters, using data-mining, data-analysis and network analysis tools to identify potential tax evaders and fraudsters.
The CGST is going "hammer-and-tongs" on all sectors of the economy, including services, exports, imports and digital to identify tax evaders who are causing unfair competition for honest and compliant tax payers, and the campaign will be intensified in the coming weeks, Chaudhary added.
