CGST Commissionerate Raigad busts fake GST ITC racket, 1 arrested

The CGST Commissionerate, Raigad of CGST Mumbai Zone, has busted a racket of fake GST Input Tax Credit involving fake invoices amounting to ₹70Cr involving ITC of ₹13Cr and arrested the proprietor of a Kalamboli-based firm

The Central Goods and Service Tax (CGST) Commissionerate, Raigad of CGST Mumbai Zone, has busted a racket of fake GST Input Tax Credit (ITC) involving fake invoices amounting to ₹70Cr involving ITC of ₹13Cr and arrested the proprietor of a Kalamboli-based firm.

The proprietor of a Kalamboli firm has been arrested after CGST Commissionerate Raigad busts a fake GST ITC racket. (HT FILE)

Based on tip-off from Central Intelligence Unit (CIU) of CGST Mumbai zone, a team from Anti-Evasion Wing of CGST Commissionerate, Raigad initiated an investigation, which revealed that the firm had availed fake ITC on the basis of bogus invoices issued by more than 10 non-existing firms and passed this fake ITC to other firms.

“On paper, he had portrayed to be dealing with metal scrap but in reality no such firm was being operated from the place and the accused was always on the move,” CGST Raigad commissioner, Neeraj Kansal, said. After a 15km chase, the accused was apprehended near a petrol station in Navi Mumbai.

The accused has been arrested on Friday and produced before the Judicial Magistrate, Panvel, wherein he has been sent to judicial custody for 14 days.

Raigad CGST Commissionerate has detected tax evasion of nearly ₹700Cr and recovered ₹405Cr and arrested nine persons in the financial year 2021-22.