CGST Navi Mumbai arrests authorized person of firm for claiming Input Tax Credit against fake invoices

Mumbai, 30th December 2021: Central Goods and Services Tax (CGST), Navi Mumbai arrested the authorized person of M/s. G. S. Steel, for having availed and utilised fictitious Input Tax Credit (ITC) amounting to Rs. 5.13 Crores against bogus invoices without supply of goods. The accused has been arrested and was produced before the First class Magistrate, Belapur today, 30th December 2021 and has been sent on judicial custody for 14 days.

A team of officers of Anti-Evasion, CGST, Navi Mumbai conducted inquiry against the firm, which is involved in trading of metal scrap. During the inquiry it was found that the firm and had been availing fraudulent Input Tax Credit based on bogus invoices from their suppliers namely M/s. V K Aluminium, M/s. Markandey Traders, M/s Rigal Aluminium, M/s. M S Steels, M/s. Tamanna Trading Co., M/s. United Traders, M/s. Sunrise Traders, M/s Divine Enterprise and all the suppliers have been found to be non-existent on enquiry.

As per Section 132 of the CGST Act 2017, issuance of an invoice or bill without supply of goods or services and wrongful availment or utilisation of Input Tax Credit is a cognizable and non-bailable offence if the amount is over Rs. 5 Crore. The accused has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section Section 132 (1) (c) of the said Act