• Notification Date: 10-01-2022
  • Notification No: N/A

Two Bizmen got Arrested for Rs70crore GST Tax Credit Fraudulence

Two businessmen got arrested for an act of input tax credit fraudulence. These men have been fictitiously availing and passing tax credit of rupees 70crore. One of these men is the director of Omnipotent Industries Ltd. The investigating officer has reported that this man has floated a public issue. The other businessman is a promoter of Shree Bitumax Trading.

The companies had registered themselves with GST. They were trading materials like bitumen, asphalt, oil shale, and tar sand. They are charged for fraudulently availing and passing on the input tax credit. The tax credit passed on by them was worth rupees 20.75crore and rupees 11.31crore respectively. They did not receive any goods or services against these tax credits. The officials have discovered that these businessmen have been availing fake tax credits. They received the credits from fake and non-existing entities. The credits were then passed on to other fake entities. 12 other entities have passed on fake tax credit worth rupees 38crore.

Mumbai Zone has been looking into this case as a part of a special dive. The dive continued for four months. In this period, around 500 tax evasion cases have been filed. 40 people have been arrested during this dive. Rs 4,550crore of tax evasion and Rs 600crore of tax recovery have been detected during this investigation.