The Central Board of Excise and Customs vide a Press Release dated March 1, 2018 in the case of Fraud by two businessmen in Mumbai who were creating fictitious invoices and were availing ineligible credit and have been arrested by Officers of CGST, Mumbai.
The Press Release talks about the Enforcement Action in case of Fraud. The power to arrest is provided under section 69 of the CGST Act, 2017 and is to be exercised by the Commissioner in cases of outright fraud where the amount of tax evaded or the amount of input tax credit wrongly availed exceeds Rs. 2 crore under Section 9 of the CGST Act, 2017.
But the government assures the taxpayers that compliant taxpayers do not run the risk of facing such punitive action in carrying out their day to day operations. The power to arrest is to be exercised where there is deliberate fraud of sizeable magnitude with intent to evade tax.
