The Central Goods and Services Tax (CGST) officials have arrested a Borivli trader for GST fraud of ₹10.59 crore. The accused illegally availed Input Tax Credit (ITC) and also passed on the same to other offenders, causing revenue loss to the government.
Input tax credit is an option that allows taxpayers to claim credit for taxes paid on purchase. Issuance of an invoice or bill without supply of goods or services and wrongful availing or utilisation of Input Tax Credit on a bill or invoice, without any supply of goods or services is a non-bailable offence.
The accused, Pranav Shankarlal Harsh, a resident of Borivli west, is the proprietor of Shree Steels that supplies mild steel scrap. He had obtained the GST registration on July 12, 2018.
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CGST officials got a tip-off that the accused received invoices in the name of non-existent firms without actual supply of goods or services, enabling him to avail input tax credit. He also allegedly passing on the input tax credit on invoices on which no goods or services were supplied.
Following this, the CGST officials searched the premises of Shree Steels at Kandivali (West) on March 5. The search led them to incriminating documents and Harsh’s satement was recorded on March 10.
{{/usCountry}}Following this, the CGST officials searched the premises of Shree Steels at Kandivali (West) on March 5. The search led them to incriminating documents and Harsh’s satement was recorded on March 10.
{{/usCountry}}“He has availed ₹10.59 crore as ITC and utilised an amount of Rs.10.93 crores for payment of taxes and he has availed inadmissible ITC and have also received invoices without supply of goods from various suppliers,” a CGST official said.
Harsh has been sent to custody after being charged under section 132 (1)(b) and (c) of the Central Goods & Services Tax Act, 2017.