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.