Hyderabad businessman arrested for Rs 32 crore CGST fraud

According to the CGST officials, the company linked to the accused was engaged in the trading of TMT bars, steel pipes and tubes.

Hyderabad: A Hyderabad-based businessman has been arrested for a Rs 32.28 crore Input Tax Credit (ITC) fraud.

The Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Secunderabad Commissionerate, took the alleged mastermind into custody on Thursday, September 24, as part of its ongoing crackdown on fraudulent ITC claims.

According to the CGST officials, the company linked to the accused was engaged in the trading of TMT bars, steel pipes, and tubes.

The investigation found that the company availed ITC on invoices issued by firms that were non-existent, non-functional, or had cancelled GST registrations.

Field inspection by jurisdictional authorities reportedly established that these suppliers were bogus entities and had no genuine business activity at their declared places of business.

Investigators found that the firm allegedly claimed a tax credit despite there being no actual receipt of goods against the invoices.

The allegedly fake ITC was subsequently used to discharge the company’s GST liability, the authorities said.

Such availment and utilisation of ITC without actual receipt of goods is in contravention of the provisions of the Central Goods & Services Tax Act, 2017.