MUMBAI, A businessman was detained in connection with a fraudulent GST Input Tax Credit (ITC) racket unearthed by the Mumbai Central CGST Commissionerate, which involved false bills for Rs 234 crore and fake ITC worth Rs 41 crore.
According to a GST official, the authorities launched a probe against two Masjid Bunder-based firms, Jai Vinayak Impex Private Limited and Jai Vinayak Metal Corporation, based on information input from the Central Intelligence Unit, Mumbai CGST Zone. A group of senior officials was created to investigate the situation.
According to the official, searches were conducted on the company's premises as well as the proprietor's and director's homes."The businessman, who is the sole proprietor of one firm and a director of another, was discovered getting bogus ITC from 40 entities and passing it on to numerous entities without really supplying or receiving goods," the source added.
The merchant was arrested under section 69 of the CGST Act based on material evidence gathered throughout the inquiry and his confession.