The accused's firm was dealing in trading of asbestos, cotton yarn, sewing thread, etc. It had fraudulently taken credit of input tax showing the value of goods amounting to ₹503.80 crore
GST authorities have arrested an alleged mastermind from Thane in relation to input tax fraud worth ₹90.68 crore on Saturday. The accused has been remanded to judicial custody till November 5.
"In a major drive initiated against fraudsters who are availing and utilising fake input tax credit (ITC), Thane Central GST Commissionerate, Mumbai CGST Zone has arrested a mastermind who had opened a firm M/s. Doshi Marketing and was operating from Bhayander West. He has indulged in fraudulent availment and utilisation of input tax credit to the tune of ₹90.68 crore without receiving the goods or services in violation of the provisions of CGST Act 2017," a Ministry of Finance statement read.
The firm was dealing in trading of asbestos, cotton yarn, sewing thread, etc. It had fraudulently taken credit of input tax showing the value of goods amounting to ₹503.80 crore, the statement mentioned.
This was a paper transaction only without actual supply of goods and without filing of e-way bills, it further stated.
"The mastermind accused was arrested under provisions of CGST Act 2017 and was remanded to judicial custody till 5th of November by Judicial Magistrate First Class Court, Thane," the government statement said.
In another two separate cases, Trimurti Gems and Nikita Trading & Co, operating in the Bhayander area, were also found to be involved in fraudulently availing and passing on the input tax credit amounting to ₹292 crores. These firms were not active and their registrations had been cancelled.
Cases have been booked against the accused and efforts are on to nab the masterminds in these cases also, the ministry stated.
