Thane The owner of Messrs. Star Scrap Steel Company was arrested by the Thane Commissionerate of Goods and Services Tax on Friday for taking advantage of an input tax credit of around Rs 12 crore in exchange for not getting any goods or services.

The operation against the scrap company was aided by a special criminal investigation system developed by the Mumbai Goods and Services Tax Department, on the basis of which the Thane Commissionerate has uncovered the tax evasion case. The company was getting ‘input tax credit’ without getting any goods from many traders. An ‘input tax credit’ was obtained by pretending that the raw material was taxed on the basis of a receipt issued by a fraudulent organization, in the absence of receipt of any goods and had not been supplied.

Investigations are underway into various fraudulent organizations in Thane, Mumbai, Navi Mumbai and Raigad, which have been collecting ‘tax-paying rebates’ in the name of Star Scrap Steel Company. The owners of Star Scrap Steel have been arrested under the provisions of Goods and Services Tax Act 2017. The promoters were produced in the Judicial First Class Magistrate’s Court on Friday (December 3) and remanded in judicial custody for 14 days.

The post GST officer arrested in Thane for tax evasion appeared first on Loksatta.


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