Maharashtra metro contractor arrested for GST fraud worth Rs 9 crore

CGST Mumbai zone officials have launched a drive against the use of fake GST bills and other offences such as illegal claims of Input Tax Credit (ITC) that was built under the GST to avoid cascading of taxes. As a part of this drive, GST Intelligence officials from Navi Mumbai have detected tax evasion of Rs 415 Crore, and recovered over 18 crore.

Mumbai:A contractor of Maharashtra Metro Rail Corporation has been arrested by Central GST officials on the charge of GST evasion of Rs 9 crore. Officials in the CGST Navi Mumbai Commissionerate arrested a businessman, a co-venturer of Pratibha CSL Sudhir Constructions Joint Venture, for collecting GST from Maharashtra Rail Corporation and not depositing it with tax authorities within three months as mandated under the GST law.

Sources in the CGST Mumbai said the entity had taken a contract from Maharashtra Metro Rail Corporation in the year 2016 for construction of Metro Train Depot at Nagpur and had collected GST. “They had not paid GST of Rs 8.05 crore to the GST authorities, which was collected three years ago in 2018. Moreover, the businessman had also availed ineligible Input Tax Credit (ITC) of Rs 95 lakhs,” said the officials.

According to the authorities, the GST collected by a taxpayer has to be deposited with the exchequer within three months of the collection, otherwise, it is an offence under section 132 of the CGST Act.

Officials said the offender businessman, who was arrested on Thursday under Section 69 of the CGST Act of 2017, was presented to a Judicial Magistrate in Vashi who sent the businessman for 14 days of judicial custody. Officials said that. in addition to payment of tax, interest and penalty, the offence attracts a maximum jail term of five years.

CGST Mumbai zone officials have launched a drive against the use of fake GST bills and other offences such as illegal claims of Input Tax Credit (ITC) that was built under the GST to avoid cascading of taxes. As a part of this drive, GST Intelligence officials from Navi Mumbai have detected tax evasion of Rs 415 crore and recovered over Rs 18 crore. CGST Navi Mumbai officials have also arrested 10 offenders so far.

As reported earlier by ETV Bharat, the GST intelligence officials have been using the latest data intelligence tools, including Big Data and Network Analysis to crack down on the tax offenders. In the last five months, the officials of the CGST Mumbai zone have booked more than 625 cases of tax evasion. CGST Mumbai officials have detected tax evasion of over Rs 5500 crore, recovered Rs 630 crore and arrested 47 persons during the same period.

Central GST Mumbai officials are also collaborating with their counterparts in Maharashtra GST as the common goods and services tax is administered by both the Central and State Governments. According to officials, both sides agreed to initiate a coordinated anti-tax evasion drive against the tax evaders.

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