The CGST Thane Commissionerate, Mumbai Zone, has 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 the 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 an 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 offenses that 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 taxpayers, and the campaign will be intensified in the coming weeks, Chaudhary added.
