According to officers, the accused had shown bogus purchases and thereby availed of an Input Tax Credit of more than Rs 8.74 crore without actually buying any goods or services, causing a revenue loss of Rs 17.48 crore to the government
The accused failed to produce any documents and furnished false and misleading information with the intention to evade payment of tax. Representational pic
Goods and Services Tax (GST) officers have arrested a Thane businessman for tax evasion of Rs 17.48 crore. According to officers, the accused, identified as Chandan Lakhara, showed bogus purchases and sales to avail an Income Tax Credit (ITC) of more than Rs 8.74 crore.
According to officers, Lakhara, the proprietor of M/s Moon Trader company — registered under the Maharashtra Goods and Service Tax Act 2017 in Thane — through his firm, had shown bogus purchases and thereby availed of an Input Tax Credit of more than Rs 8.74 crore without actually buying any goods or services, causing a revenue loss of Rs 17.48 crore to the government.
An officer stated that with the help of local authorities and due verification by GST officers, it was discovered that his company does not have physical possession of goods as claimed by the accused.
Additionally, Lakhara failed to produce any documents and furnished false and misleading information with the intention to evade payment of tax, said the officer.
Various transporters have also told investigators that they have not transported any goods as shown in their name by the company, the officer added.
Lakhara was arrested under the Goods and Services Act, 2017, said an officer, adding that he is currently in judicial custody.
What is Input Tax Credit?
Input Tax Credit (ITC) refers to the tax paid on purchases for the business which can be claimed as a deduction at the time of paying tax on output tax. Issuance of an invoice or bill without supply of goods or services and wrongful availment or utilisation of Input Tax Credit on a bill/invoice without any supply of goods or services is a cognisable and non-bailable offence.
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