In a major breakthrough, the Mumbai Zonal Unit of Directorate General of GST Intelligence (DGGI-MZU) has arrested four persons for allegedly passing on fictitious Input Tax Credit (ITC) amounting to a total of Rs 408.67 crore.
The four arrested are the director of Rane Megastructure Private Limited, the proprietor of ACS Hardware and Networking, the director of Keshariya Metal and group companies, and the Managing Director of Shailaja Commercial Trade Frenzy Limited. The accused have been sent to judicial custody till November 24. DGCI-MZU that functions under the Central Board of Indirect Taxes and Customs did not reveal their identity.
Rane Infrastructure Private Limited further passed on ITC of approximately of Rs 85.44 crore to another company, without any actual supply. According to the statement released, “In his cartel, bogus ITC has been passed on in a linear manner, in which the ultimate beneficiary has availed and utilized ITC either for payment of their output tax liability or taking refund for unutilized ITC, some persons of this cartel have been arrested earlierâ€.
In another case, a group of companies comprising Keshariya Metal Private Limited, Kajal Trading Company, Hi-Tech Impex, Gravity Alloys, and Sunshine Impex was found to be involved in creating fictitious invoices with an aim to avail and pass on of ineligible ITC on the strength of only invoices, without any supply of goods and services. Like this, they have availed and passed on ITC cumulatively amounting to Rs 103.78 crore in a fraudulent manner.
In a separate case, Shailaja Commercial Trade Frenzy Limited was also involved in the issue and receipt of bogus invoices resulting in fraudulent availment of ITC amounting to Rs 48.69 crore on the strength of invoices, without any supplies. The bogus supplies were used to inflate the turnover.
