Officials of the Central Goods and Services Tax (CGST) in Navi Mumbai have arrested a company owner and his aide for allegedly availing and passing on fake input tax credit to the tune of Rs 20.96 crore, an official said on Friday.
The CGST officials had on Wednesday arrested the proprietor of two companies — Storage Miles and Catbus, while his accomplice was also subsequently nabbed in connection with the irregularities, the official said.
The firms had allegedly availed and utilised input tax credit of Rs 10.48 crore, which has been received from bogus/fake entities on the strength of bogus invoices and passed on the same amount. The total amount of bogus invoices involved is to the tune of Rs 117 crore, without actual supply of goods or services, he said.
The accused have been arrested under relevant provisions of the Central Goods and Services Act, 2017, the official added.