Mumbai businessman arrested for ₹31-crore GST fraud
The Maharashtra Goods and Services Tax (GST) department on Friday arrested a Vile Parle-based businessman for allegedly causing revenue loss of ₹31 crore to the state government by violating GST rules by fraudulently claiming input tax credit.
Joint commissioner of Maharashtra GST, Sampada Mehta confirmed the development.
The accused, Anuj Gupta, had shown estimated bogus purchases to the tune of over ₹272 crore and had availed input tax credit of more than ₹31 crore without actually buying any goods or services, according to the department.
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 availment or utilisation of input tax credit on a bill or invoice without any supply of goods or services is a cognisable non-bailable offence.
Gupta has a total of five firms — Savvy Fabrics, Shiv Textiles and Shakti Textile which are registered under Maharashtra Goods and Service Tax Act 2017, and Subhlene Fabrics and Shubhmangal Textile Industries which are registered in the Union Territory of Dadra and Nagar Haveli.
The two firms at Dadra Nagar Haveli have received a refund of more than ₹11 crore from the government.
“With the help of Dadra Nagar Haveli GST officials, it was discovered that these companies physically possess only 20% of the total stock value claimed by them,” said a GST official.
Various transporters have also told investigators that they have not transported any goods as shown in their name by these five firms.
Gupta was produced before a magistrate and has been sent to 14 days of judicial custody. He is charged for the said offences which attract a punishment of imprisonment up to five years with fine as per the Goods and Services Tax Act.