Three partners of a firm based in neighbouring Thane district were arrested on Sunday for allegedly evading Goods and Services Tax (GST) and fraudulently availing input tax credit (ITC) collectively worth Rs 78 crore, officials said.
The arrest was made after the Central CST Bhiwandi Commissionerate in Mumbai zone unearthed the alleged irregularities, an official statement said.
"The action was taken based on specific intelligence inputs about the non-payment of CSR and fraudulent availment of ITC against A S Agri and Aqua LLP," the statement issued by the CGST commissionerate said.
During the investigation, the CGST officials gathered material evidence and three partners of that firm were arrested on Sunday under Section 69 of the CGST Act, 2017, it added.
The accused persons, who had established the firm along with 16 other partners, were sent to judicial custody till Friday.
"The firm has not discharged the GST liability worth Rs 53 crore 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 GST Act," the statement said.
The firm fraudulently availed ITC worth Rs 25 crore on the work contract services for construction of immovable property, which is not available under the provisions of the CGST Act, it stated.
The action was taken as part of the special drive launched by the CGST Mumbai zone against the tax fraudsters and fake ITC networks. In the last one year, CGST Bhiwandi commissionerate has arrested 14 persons, it added.
The CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters, the statement said, adding that the drive against the tax evaders will be intensified in the coming days.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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