CGST Mumbai Central Commissionerate arrests directors of 2 firms over GST fraud

CGST Mumbai Central Commissionerate arrested the directors of two companies for allegedly availing of tax credit in a fraudulent manner.

Director, Shah Brothers Ispat Pvt Ltd, Sanjiv Pravin Mehta, and Director, V N Industries, Vinaykumar D Arya, were arrested for availing of ineligible credit of Rs. 5.20 crore and Rs. 2.03 crore.

The investigation has revealed that the companies were only exchanging invoices for so-called sale and purchase.

There was only paper and invoice movement, but no actual sale or purchase of goods.

These exchanges were being done with a malafide intention to defraud the exchequer by opening Letters of Credit on fake purchase transactions.