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Iron industry players in Mumbai zone under lens over fake GST input tax credit

A whopping 11 of the 13 cases registered by the Mumbai zone of CGST in the last one year for availing fraudulent input tax credit (ITC) are linked to firms dealing in the iron and steel industry. Tax officials discovered various modus operandi through which ITC was fraudulently claimed. This includes availing ITC based on fake invoices without actual receipts of input goods. Such fraudulent credit is then subsequently utilised for payment of GST liability which hampers government’s cash collection drive. These bogus transactions were also resorted to inflate the turnover and avail bank loans which subsequently turn into NPAs. 

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