Mumbai: Dummy firm proprietor arrested for Rs 14.4 crore input tax credit fraud

The officials conducted a visit at the address of the firm which was found to be non-existent. The initial investigation revealed that the firm had fraudulently availed excess/fake input tax credit (ITC) of Rs. 7.2 crore and subsequently passed the same amount of fake/ineligible ITC to accommodate their recipients. The accused had not produced any documents on which the said ITC is claimed and passed on.

The woman was booked under Section 69 of CGST Act, 2017, and produced before a magistrate court in Mumbai where she was remanded to judicial custody. This is the eighth arrest made in different cases by the Bhiwandi Commissionerate since August last year.