The Central Goods and Services Tax (CGST) Thane unit arrested two people and registered a case of false invoice and use of an ineligible input tax credit (ITC) against two companies.
According to CGST, the names of the companies are M / s Neha Impex and M / s Rohini Inpex. “During the investigations, it was found that the two companies had been created in the name of fictitious persons and on the basis of fraudulent documents,” said CGST. The ITC is an option of the GST that allows taxpayers to claim a credit for taxes paid on the purchase.
“The said companies had issued the false invoices without supplying goods or services to a group of nine companies owned and operated by Hanif Mohammed Nagaria and Faisal Hanif Mohammed Nagaria,” officials said.
Investigations revealed that they used these two companies to claim the ineligible ITC which was then cashed to them as a refund through their nine companies under the garment export empire. all ready. “The total value of the invoices issued by the two companies is Rs 233.21 crore and the tax involved in said amount was Rs 13.82 crore,” CGST said. The agency arrested the duo on Friday and was brought before a court which took them into custody until December 10.
The GST Intelligence Branch also cracked down on false ITC fraud amounting to several hundred crore. The Mumbai zonal unit on Wednesday arrested three people for engaging in massive frauds involving availability and use, as well as transmitting ITC on the basis of fake invoices.