Owner of scrap steel unit arrested for alleged input tax credit fraud
The proprietor of a steel scrap unit in Mumbai has been arrested in connection with input tax credit fraud, according to an official press release.
The proprietor of Star Scrap Steel was arrested by the Thane Commissionerate of Central GST. “The investigation has revealed that the firm indulged in fraudulent availment and utilisation of Input Tax Credit (ITC) to the tune of ₹12 crore without receiving the goods or services in violation of the provisions of CGST Act 2017,” according to a press statement.
“The firm was getting Input Tax Credit from many trading companies and was further passing it on to Rolling Mills. This was done by getting inadmissible Input Tax Credit on the basis of invoices issued by fraudulent entities without receipt and supply of goods,” the statement added.
Searches were carried out at various premises located across Thane, Mumbai, Navi-Mumbai and Raigad, which were involved in issuing fake credit to Star Scrap Steel without actual supply of goods. The proprietor has been remanded to 14 days of judicial custody. Further investigation in the matter to identify others involved in tax fraud is under progress, it said.