GST Fraud: Two arrested in Mumbai
Two businessmen Shailendra Jayantilal Khona from Mulund and Rakesh Boob alias Lakhan from Bhayander were arrested for committing GST evasion by fraudulently availing input tax credit of Rs 76 crore based on fake purchases. The arrest was reported by the anti-evasion wing of GST, Mumbai on Saturday. A businessman can cut his tax liability by claiming credit to the extent of GST paid on...
Two businessmen Shailendra Jayantilal Khona from Mulund and Rakesh Boob alias Lakhan from Bhayander were arrested for committing GST evasion by fraudulently availing input tax credit of Rs 76 crore based on fake purchases.
The arrest was reported by the anti-evasion wing of GST, Mumbai on Saturday.
A businessman can cut his tax liability by claiming credit to the extent of GST paid on the purchase. Traders often submit fake invoices or purchase bills to
Khona has said his most of his transactions were in cash and to adjust cash transactions, he issued bills in the name of firms existing only on paper.
These firms then transferred money through RTGS which Khona returned after deducting commission. Officials during raids found that suppliers existed only on paper. Lakhan assisted Khona in the fraud.
