GST officers have arrested one person for operating a syndicate and issuing fake invoices of Rs 4,521 crore for availing input tax credit (ITC) benefit under goods and services tax, an official statement said on Friday.
The CGST, Mumbai-South Zone has arrested the proprietor of a Girgaum based company involved in trading of copper and metal scrap, for allegedly availing and passing fake ITC amounting to Rs 21.74 crores. The arrested person was produced before the court and has been remanded to 14 day’s judicial custody.
The Central Board of Indirect Taxes and Customs (CBIC) said the commissioner or an officer authorised by him must form an opinion for blocking of input tax credit only after "proper application of mind" considering all the facts of the case.