One person arrested in fake ITC racket worth Rs. 12 crores busted by Thane CGST

On the basis of particular intelligence developed by the CIU, Mumbai CGST Zone, officers from the CGST Thane Commissionerate filed an anti-evasion case and detained the proprietor of M/s. Star Scrap Steel. The company deals in ferrous waste and scrap, as well as remelting scrap iron and steel ingots. The investigation indicated that the company had fraudulently obtained and used Input Tax Credit (ITC) worth Rs 12 crores without obtaining goods or services, in contravention of the terms of the CGST Act 2017.

Many trade companies provided Input Tax Credit to the firm, which it then passed on to Rolling Mills. This was accomplished by obtaining inadmissible Input Tax Credits based on fake invoices submitted without receipt or supply of commodities.

Taxpayers’ homes in Thane, Mumbai, Navi Mumbai, and Raigad were searched after they were found to be involved in extending bogus credit to M/s. Star Scrap Steel without really supplying commodities. M/s. Star Scrap Steel’s proprietor was arrested under the CGST Act 2017 and appeared before the Hon’ble Judicial First-Class Magistrate Court, Thane on December 3, 2021, where he was remanded in judicial prison for 14 days. Further investigation into the situation is underway in order to discover other people who may be implicated in tax fraud.