Mumbai: Vikhroli businessman, four others held for Rs 440-crore GST credit fraud - GST NEWS

Times of India

Mumbai: Vikhroli businessman, four others held for Rs 440-crore GST credit fraud MUMBAI: Five people, including the director of a Vikhroli-based company, have been arrested by central GST officials for fraudulently claiming Rs 441 core as input tax credit with the help of forged invoices and shell companies. The accused also allegedly took Rs 146-crore in loans from various cooperatives banks after manipulating documents. ALSO LIKE OUR FACEBOOK PAGE: https://www.facebook.com/latestgstnews/ "During investigation, we learnt that the accused had taken bank loans with the help of fabricated balance sheets. We will ask the banks to file separate criminal cases against the accused," said Raghavendra Pal Singh, joint commissioner, CGST. The traders bought fake bills, which they used to claim input tax credit on supply that never occurred. Input tax credit is an option that allows taxpayers to claim credit for taxes paid on purchase. In this case, the accused were buying goods from manufacturing companies, but would also obtain fake invoices in the name of different companies associated with them without the movement of any goods. The accused made fake invoices worth Rs 1,000 crore, officials said. Recently, CGST officials got specific intelligence that Uday Desai, director of the Vikhroli company Reena Tinaaz was defrauding tax authorities with the help of fake transactions. Kiran Verma, CGST commissioner, Navi Mumbai, ordered a raid of eight premises in Mumbai, including at Vikhroli and Andheri, on Tuesday. Officials learnt that Desai had floated several other companies in the names of former and current employees. The arrested men include Jignesh Patel, Vinayak Tawhare, Shekhar Mudaligar and Krunal Desai, all proprietors of companies involved in Desai's crime.

                          source:- Times of India