A businessman has been arrested by Goods and Services Tax (GST) officials in Maharashtra's Thane district for allegedly evading taxes worth Rs. 24.55 crore by fraudulently issuing invoices without actual supply of goods, an official said this morning. Acting on specific inputs, searches were conducted at three firms of businessman Bhavin Bharat Shah during which incriminating documents and sale/purchase invoices were found, a spokesperson of the Central GST and Excise department said.

Mr Shah floated three firms, namely, M/s C B Shah and Co, M/s Padmavati Enterprise and M/s Maanya Impex, which were allegedly involved in the receipt of fake bills/invoices and issuance of invoices without the supply of actual goods. He allegedly availed wrong Input Tax Credit of Rs. 24.55 crore on the basis of bogus invoices for Rs. 136.38 crore without the actual supply of goods, the official said.

"The payment for the said invoices was made through RTGS and the cash was received after deduction of commission of 50 per cent of the GST involved," he said. "Shah also admitted that he had issued invoices to various companies without the supply of goods or services on a commission basis of two per cent and three per cent of the value of goods," the spokesperson said.

Following the searches, Mr Shah was arrested on Tuesday and booked under relevant sections. He was subsequently produced before a magisterial court which remanded him to judicial custody till September 9, the official added.

Source:ndtv