Thane CGST busts ‘Rs 12-crore fake input tax credit racket’

Investigation has revealed that the firm fraudulently availed and utilised Input Tax Credit (ITC) to the tune of Rs 12 crore without receiving the goods or services in violation of the provisions of CGST Act 2017.

The CGST Thane Commissionerate has arrested the proprietor of M/s Star Scrap Steel and booked an anti-evasion case against the firm, which is involved in trading of ferrous waste, scrap and remelting scrap ingots of iron or steel.

Investigation has revealed that the firm fraudulently availed and utilised Input Tax Credit (ITC) to the tune of Rs 12 crore without receiving the goods or services in violation of the provisions of CGST Act 2017.

Acting on specific intelligence developed by the CIU, Mumbai CGST Zone, the CGST Thane Commissionerate carried out searches at various premises of taxpayers across Thane, Mumbai, Navi Mumbai and Raigad, which were involved in issuing fake credit to M/s Star Scrap Steel without actual supply of goods. The proprietor of M/s Star Scrap Steel was arrested under provision of CGST Act 2017, produced before the Judicial First-Class Magistrate Court, Thane on December 3 and remanded to judicial custody for 14 days.

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