Export firm director arrested for GST Fraud of over 15 crore

The Thane CGST (Central Goods and Services Tax) Commissionerate of the Mumbai zone’s anti-evasion unit has detained the director of an export company, Corvette Trade Link Pvt Ltd, for allegedly falsely claiming a GST input tax credit of Rs 15.26 crore.

This input tax credit was claimed on the basis of fraudulent invoices of Rs 85 crore generated by fictional organisations, according to a statement from the CSGT department.

After receiving a tip from Delhi Customs, the Thane CGST department examined the footwear exporter. The company had claimed a GST input tax credit based on phoney invoices issued by non-existent fictional entities in Delhi, according to the probe. The corporation used this fictitious ITC to pay IGST (Integrated Goods and Services Tax) on exports through ICD Tughlakabad, Delhi, and subsequently claimed an IGST refund from Indian Customs.

According to the statement, the director was arrested on March 3 and charged with violating sections 132 (b) and 132 (c) of the CGST Act, 2017. The accused was taken into custody by the Chief Metropolitan Magistrate in Mumbai for a period of 14 days. He might face up to five years in prison and a fine if found guilty, according to the statement.

According to the statement, this case is part of CGST’s Mumbai Zone’s anti-evasion campaign against tax evaders and fraudsters. In the last six months, the CGST Thane Commissionerate has discovered Rs 1,238 crore of tax fraud, recovered Rs 20 crore, and arrested seven people, according to the statement. To detect possible tax dodgers, the agency claimed it was using data-mining, data analysis, and network analysis techniques.

It further stated that the anti-evasion campaign would be stepped up in the following days.