Bizman held for GST fraud as accountant spills the beans

Categories: GST Recent News

The Palghar unit of the Central Goods and Service Tax (CGST) has arrested a businessman for allegedly availing input tax credit (ITC) of nearly Rs 8.6 crore on the basis of forged invoices to non-existing firms.

The arrested accused, Abdul Kadar Haji Gani Batatawala, is a resident of Dongri and owns Palghar-based Rollmet LLP. The firm deals in retail trade and repair of personal and household goods. According to the Central Board of Indirect Taxes and Customs portal, the registration of the firm done in December 2020.

The CGST Palghar unit was investigating companies suspected of availing inadmissible input credit, and this is how the Rollmet LLP came under the scanner. On examination of records from the GST portal, it was revealed that Batatawala was an active partner in the firm. The officials questioned the accountant of the firm who spilled the beans on the firm’s activities. He said goods were received without actual supply/receipt of goods and remaining invoices were received without actual supply/receipts of goods.

During the investigations, it was found that many of the suppliers were found to be non-existent or fake firms. Officials said that Rollmet availed ITC on the total value of goods in the invoices to the tune of Rs 47.70 crore and the tax involved was Rs 8.59 crore.

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