Exporter arrested for claiming fake ITC of `15.26 cr

Mumbai: An exporter was arrested by officials from the Central GST Commissionerate at suburban Thane for allegedly claiming fake input tax credit (ITC) of Rs 15.26 crore, as per an official statement on Friday.

The exporter is a director of Borivali-based Corvette Tradelink and had claimed the ITC based on bogus invoices of Rs 85 crore issued by fake entities, the statement said.

An investigation was initiated based on inputs received from Delhi Customs, which was further developed by officers of Thane Commissionerate, it said.

The firm was engaged in export of footwear and had availed GST ITC fraudulently on the basis of bogus invoices issued by non-existent entities from Delhi.

The company had used this fake ITC for payment of IGST for exports through ICD Tughlakabad, Delhi and had subsequently claimed IGST refund from customs on the fake ITC so used, the statement said.

The director of the company was arrested on Thursday, it said without revealing the person's identity. The director has been remanded to judicial custody of 14 days by a local court.

This case is part of an anti-evasion drive launched by CGST, Mumbai Zone against the tax evaders and fraudsters, the statement said. CGST Thane Commissionerate alone has detected tax evasion of Rs 1,238 crore, recovered Rs 20 crore and arrested seven people in the last six months.

The CGST department is using data-mining, data analysis and network analysis tools to identify potential tax evaders and fraudsters, it said, adding that the drive will be intensified in coming days.