CGST, Mumbai, officers arrest two businessmen for fraud

Speed Post News Network

New Delhi : The officers of CGST Mumbai have arrested two businessmen for creating fictitious invoices and availing ineligible credit. They have been arrested for availing input tax credit on the basis of fraudulent invoices against which no actual goods were bought or sold.

The power to arrest is provided under Section 69 of the CGST Act, 2017, and is to be exercised by the Commissioner in cases of outright fraud where the amount of  tax evaded or the amount of input tax credit wrongly availed exceeds Rs 2 crore, according to a PIB release.

The Government wants to assure taxpayers that compliant taxpayers do not run the risk of facing such punitive action in carrying out their day to day operations. The power to arrest is to be exercised where there is deliberate fraud of sizeable magnitude with intent to evade tax. It is meant to serve as a deterrent to unscrupulous elements in trade who may try to defraud the system.