Mumbai businessman held in GST fraud worth ₹314 crore

The Central Goods and Services Tax (GST) department on Thursday arrested a businessman from Andheri in GST fraud to the tune of ₹314.25 crore. The accused illegally availed input tax credit (ITC) and also passed the same on to other offenders, causing revenue loss to the government.

The accused, Daulat Samirmal Mehta, 64, is a director of Twinstar Industries Limited and other companies having their corporate office near Chakala, Andheri (West). Mehta is also the managing director of Originet Technologies Ltd and promoter of Boostmetric Solutions Ltd, Vintage Comtrade Pvt Ltd, Stuti Comtrade Limited and Kala Exports.

According to sources in the GST department, Mehta operated all six firms from his office premises. He and his staff had access to all the records, as well as the user IDs and passwords of the GSTINs of all six firms.

“The accused fraudulently availed and utilised ineligible input tax credit amounting to approximately ₹122.59 crore on the strength of bogus invoices, without actual receipt of goods or services,” said a GST official.

The accused also fraudulently issued bogus invoices and passed on ITC to various companies, without actual supply of goods or services, thus causing wrongful passing on of ITC amounting to approximately ₹191.66 crore to the recipient companies, a source added.

ITC 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 utilisation of ITC on a bill/invoice, without any supply of goods or services is a cognisable and non-bailable offence.

The investigators have also identified the mastermind (name withheld) of the syndicate and an investigation in respect to the role of other people in the crime has been initiated.

GST officials said that the accused is not cooperating with the ongoing investigation, to avoid the GST liability. However, the lawyer for the accused, advocate Ravi Hirani, denied this and said, “My client has cooperated whenever he was called for investigations. He has nothing to do with alleged offences committed by other people.”