CGST Mumbai Zone busts case of non-payment of GST, fraud ITC availment

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The Bhiwandi Commissionerate of Central Goods and Service Tax (CGST) on Saturday busted a case of nonpayment of GST and fraudulent availment of ITC that amounted to Rs 78 crore.

"CGST Bhiwandi Commissionerate in Mumbai Zone busts case of non-payment of GST and fraudulent availment of ITC, amounting to Rs 78 cr," said Sumit Kumar, Commissoner, CGST.

The action was taken upon a specific intelligence that booked the aforesaid case against M/S A S Agri and Aqua LLP having GSTIN 27ABLFA4344D1ZM on August 7, whose three partners were previously arrested on the same day and are in judicial custody till October 4.

Further, its another partner was arrested on Friday (September 23) under Section 69 of the CGST Act, 2017 for the contravention of Section 132 of the CGST Act, 2017 and has been sent to judicial custody till October 6.

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"The said firm has not discharged the GST liability amounting to Rs 53 Cr. on Advance payments amounting to Rs 292 crore received from the recipients of Work Contract Services for construction of poly houses, which is taxable under Section 13(2)(b) of CGST Act, 2017. And the said firm has fraudulently availed ITC amounting to Rs 25 Cr on the Work Contract Services for construction of immovable property, which is not available under the provisions of Section 17(5)(c) of the CGST Act, 2017," said an official statement.

It added that out of the total liability of Rs 78 crore till date, the firm has "voluntarily discharged" the GST liability of Rs 35crores.

This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. So far, CGST Bhiwandi Commissionerate has arrested 19 persons in last one year itself.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against the tax evaders in the coming days.

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