Tax Officials arrested 2 Businessmen for GST Fraud of Rs.17 Crore

The Central Goods and Service Tax and Central Excise department arrested two businessmen for falsely claiming an input tax credit (ITC) of Rs.17 crore in separate cases.

The CGST Mumbai unit arrested trader Ujwal Jain, a Thakurdwar resident and director of SPN Gold India Pvt Ltd, which deals in the wholesale of gold-plated products and precious metal jewellery. SPN had claimed inadmissible ITC of Rs.7 crore on fraudulent invoices submitted by non-existent firms.

In the second case, the CGST Bhiwandi unit, which was investigating the fraudulent availment of ITC worth Rs.10 crore, detained Deep Himanshu Desai on Thursday. The CGST Bhiwandi commissionerate had previously arrested Nisha Munjal (49), the owner of Dixa Fabrics and Ekta Fabrics, as well as the director of Ridgewood Industries and Pretty Woman Fashion Pvt Limited.

Sumit Kumar, the CGST and Central Excise Commissioner for the Bhiwandi Commissionerate, stated that further investigation is underway to uncover more scammers involved in the fraud.

Munjal’s lawyer, Ravi Hirani said that his client Nisha is innocent because she was simply a named director in these organizations, while Desai handled the day-to-day activities of sales, purchase, taxation, and accounting.