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GST officials arrest Maharashtra businessman for Rs. 24.55 crore tax fraud

In Maharashtra’s Thane district, a businessman has been arrested by Goods and Services Tax (GST) officials for allegedly evading taxes worth Rs. 24.55 crore fraudulently.

Accused (Businessman) Bhavin Bharat Shah was engaged in issuing invoices without actual supply of goods.

Mr Shah floated three firms, namely, M/s C B Shah and Co, M/s Padmavati Enterprise and M/s Maanya Impex, which were allegedly involved in the receipt of fake bills/invoices and issuance of invoices without the supply of actual goods.

The officers had conducted searches at three firms of businessman during which incriminating documents and sale/purchase invoices were found.

He had availed wrong Input Tax Credit of Rs. 24.55 crore on the basis of bogus or fake invoices for Rs. 136.38 crore without the actual supply of goods.

Officials said “The payment for the said invoices was made through RTGS and the cash was received after deduction of commission of 50 per cent of the GST involved,”

Shah also admitted that he had issued invoices to various companies without the supply of goods or services on a commission basis of two per cent and three per cent of the value of goods.

After the searches, Mr. Shah was arrested on Tuesday and was subsequently produced before a magisterial court which remanded him to judicial custody till September 9.

Author: Niranjan Reddy

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