The Goods and Services Tax ( GST ) department, last day arrested two directors of two different firms for evasion of around Rs. 660 crores. The persons were allegedly indulged in availing input tax credit (ITC) fraudulently by using forged purchase and sale invoices.
A businessman can cut his tax liability by claiming credit to the extent of GST paid on the purchase. Fraudulent traders avail input tax credit with the help of forged invoice sale and purchase.
The Director-General of GST intelligence which was discreetly carrying out a probe into the scam has arrested Rajesh Gulvantrai Mehta and Urvvil Akshaya Jani, director of Oneworld Industries.
