The Central Goods and Service Tax (CGST) department has detected a fraud of Goods and Service Tax (GST) and Input Tax Credit (ITC) in the metal scrap business across Madhya Pradesh, Maharashtra and Gujarat.
The fraud amount is likely to around Rs 2 billion, an official said.
According to officials, the fraud was committed during the past one-and-half years through bogus business and fake invoices and e-way bills.
An official associated with investigation told PTI, “In the case, more than 11-billion of metal scraps business of more than 400 firms across three states are under the purview of our investigation. We suspect illegal benefit of Rs 2 billion through input tax credit.”
He, however, said the real fraud amount would be known after the investigation.
So far, statements of 14 people have been recorded, the official added.
Meanwhile, a CGST press release said officials have raided 17 places in Madhya Pradesh’s Indore, one place in Bhopal and two places in Jabalpur during the past four days.
Besides, two campuses in Mumbai, five in Thane in Maharashtra and five places in Gujarat’s Bhavnagar district were also raided, it added.