A resident of Kurla, Mansur Beg Ahmad Beg Mogal, has been arrested by CGST officials for availing himself of input tax credit of ₹5.88 crore on the basis of fake invoices without actual transaction of goods.
The accused had opened a fake office in Kalamboli by showing transactions of ₹30.97 crore. The accused is the proprietor of M/s. Sunrise Traders. The CGST & Central Excise Commissionerate, Raigad, arrested Mr. Mogal on Thursday. He has been remanded in judicial custody for 14 days.
Manpreet Arora, Commissioner, CGST & Central Excise Commissionerate, Raigad, said, “Data analytics of the department showed suspicious transactions and his office was just 150 sq ft with metal scraps. According to documents, the accused ran a paper company. It was found that no business operations were carried out from the premises.”
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Ms. Arora said there has been a rise in people fraudulently claiming input tax credit using PAN, Aadhaar cards and bank accounts of people from economically weaker sections. “These people let fraudsters use their documents for small financial gains. Such practices that harm our economy greatly need to be curbed and strong penal action should be taken against them,” Ms. Arora said.