The CGST Bhiwandi Commissionerate in Mumbai Zone, during a search proceeding, has busted a scam by M/S A S Agri and Aqua LLP. The firm is allegedly involved in non-payment of GST and fraudulent availment of Input Tax Credit, amounting to Rs. 78 Crores.
Based on material evidence gathered during the investigation, 3 partners of the said firm were arrested on August 07, 2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017, who established the firm (along with 16 other partners) and they were sent to judicial custody till August 12, 2022.
The said firm has not discharged the GST liability amounting to Rs. 53 Cr. on Advance payments amounting to Rs. 292 crore received from the recipients of Work Contract Services for the construction of poly houses, which is taxable under Section 13(2)(b) of CGST Act, 2017. Further, the said firm has fraudulently availed ITC amounting to Rs. 25 Cr on the Work Contract Services for the construction of an immovable property, which is not available under the provisions of Section 17(5)(c) of the CGST Act, 2017.
CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against the tax evaders in the coming days.
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