Steel co director held for Rs 333 crore GST fraud

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The Central Goods and Service Tax and Central Excise has unearthed a case where three companies fraudulently claimed a credit of Rs 333 crore under provisions of GST. Officials on Friday arrested Nagalingam Goli, director of Indore-based National Steel and Agro Industries Ltd, for availing an input tax credit (ITC) of Rs 333 crore.

ITC is paid by businessmen during a purchase and it can be used to reduce its tax liability when he makes a sale. Three companies, Vikshit Engineering, National Steel and Agro Industries and Mitesh Trading Private Ltd had indulged in issuance of sale invoices to each other without actual purchase and sale of goods, and thus passed on ineligible ITC to one another, officials said.

A probe showed that most of the company addresses were found to be fake. “The three companies existed only on paper. It also transpired that they were floated by National Steel and Agro Industries to show the bogus purchase and sale transactions only to obtain huge loans/letters of credit from banks. Accused of connivance with each other, in between July 2017 and August 2018, they individually availed ineligible input tax credit amounting to Rs 111 crore,” said an official.

Read More at: https://timesofindia.indiatimes.com/city/mumbai/steel-co-director-held-for-333cr-gst-fraud/articleshow/67099688.cms