Thane, Feb 11 (PTI) The Central Goods and Services Tax (CGST) authorities in Maharashtra's Thane have busted a racket allegedly involved in fraudulently availing input tax credit (ITC) of Rs 172 crore, and arrested a chemical company's owner for the scam, officials said on Wednesday.

The action was taken by the anti-evasion wing of the CGST and Central Excise of Thane Commissionerate.

In its probe, the commissionerate found that Bhaumik Girishbhai Gandhi, director of Florida Solvent Private Ltd, was the mastermind who fraudulently availed and passed ineligible ITC without the actual receipt and supply of goods to the tune of Rs 952 crore.

"Based on documents on record and detailed investigation, it was found that the accused orchestrated the availment and passing of fake ITC through non-existent and cancelled firms," it said in a release.

Multiple searches were conducted at the premises of suppliers of the company, which brought to light that several of the supplier firms were either non-existent or had cancelled registrations, indicating that the transactions were bogus, it said.

Further searches at Gandhi's residential premises led to the recovery of incriminating documents and evidence pointing to the fraud without the actual supply of goods.

Gandhi, in his voluntary statement, admitted to masterminding the fraud, earning commissions and directly benefiting from the illegal proceeds, the release said.

He was arrested on February 10, and produced before a local court, which remanded him in 14 days of judicial custody. PTI COR NP

Fake input tax credit scheme using non-existent suppliers exposed, alleging Rs 172 crore in fraudulent ITC claims. Investigators allege the director orchestrated systematic availment and passing of ineligible input tax credit using non-existent and cancelled supplier registrations, with searches and recovered documents evidencing no actual receipt or supply of goods and purported fraudulent ITC claims of Rs 172 crore and fabricated credits of Rs 952 crore.