The Central Goods and Services Tax department has arrested a Steel Company Director for GST evasion of Rs. 333 crores.
Nagalingam Goli, director of Indore-based National Steel and Agro Industries Ltd was arrested by the department officials on Friday for availing an input tax credit (ITC) of Rs ITC is paid by businessmen during a purchase and it can be used to reduce its tax liability when he makes a sale.
According to reports, three companies, Vikshit Engineering, National Steel and Agro Industries and Mitesh Trading Private Ltd was found to be indulged in the issuance of sale invoices to each other without actual purchase and sale of goods and thus passed on ineligible Input Tax Credit to one another.
The investigation 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.
