Officials of the Central Goods and Services Tax (CGST) have busted racket involved in generating fake input tax credit worth Rs 8 crore and arrested the proprietor of a firm dealing in trading of construction material, an official said on Friday.
Acting on a specific input, the anti-evasion wing of the CGST Thane Commissionerate initiated an investigation against J.J. Lime Depot, which deals in trading of construction material, he said.
The probe revealed that the firm had fraudulently claimed input tax credit of Rs 8.05 crore and had also issued bogus invoices of more than Rs 40 crore for passing on of this tax credit, without any supply of goods, in gross violation of provisions of the CGST Act, 2017, the official said.
In his statement, recorded during the investigation, the proprietor of the firm admitted that he had issued fake invoices to many Mumbai-based infrastructure companies, for commission, he said.
The firm's proprietor was arrested on Thursday under the CGST Act, 2017 and has been remanded to judicial custody for 14 days, the official added.
-With PTI Input