Fake invoice racket busted by Mumbai GST authority

Based on tip-off from the Central Intelligence Unit (CIU) of Mumbai zone, a team from the anti-evasion wing at Raigad initiated an investigation, which revealed that this firm had availed fake ITC on the basis of bogus invoices issued by more than 20 non-existing firms and passed on this fake ITC to other firms.
The Central GST (CGST) Commissionerate, Raigad of CGST Mumbai Zone has busted a fake ITC racket and arrested the proprietor of a Kalamboli-based firm Ashok Metal Scrap, it said on Friday. (GETTY IMAGES.)
The Central GST (CGST) Commissionerate, Raigad of CGST Mumbai Zone has busted a fake ITC racket and arrested the proprietor of a Kalamboli-based firm Ashok Metal Scrap, it said on Friday. (GETTY IMAGES.)
Published on Feb 18, 2022 06:18 PM IST
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The Goods and Services Tax (GST) authority of Mumbai Zone has arrested the proprietor of a Maharashtra-based metal scrap firm under its Raigad Commissionerate for misappropriating input tax credit (ITC) worth 12 crore, an official statement said.

Central GST (CGST) Commissionerate, Raigad of CGST Mumbai Zone has busted a fake ITC racket and arrested the proprietor of a Kalamboli-based firm Ashok Metal Scrap, it said on Friday. This firm was engaged in availing and passing on of fake GST input tax credit of 12 crore, by using bogus invoices of more than 64 crore, it added.

“Raigad Commissionerate has [so far] detected tax evasion of 675 crore and recovered 403 crore and arrested eight people, in the financial year 2021-22. The CGST department is using data analytics and network analysis tools to identify tax evaders and the department is going to intensify its drive against the fraudsters and tax evaders in the coming days and months,” Neeraj Kansal, commissioner, CGST Raigad said in the statement.

Based on tip-off from the Central Intelligence Unit (CIU) of Mumbai zone, a team from the anti-evasion wing at Raigad initiated an investigation, which revealed that this firm had availed fake ITC on the basis of bogus invoices issued by more than 20 non-existing firms and passed on this fake ITC to other firms.

The proprietor of the firm evaded the investigation proceedings and was absconding since October 2021. The person was traced after continuous vigil at various locations in Mumbai and Rajasthan.

The accused was arrested on February 17 and was produced before the court at Panvel, which sent him to judicial custody for 14 days, the statement said.

“This case is a part of special anti-evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer,” Kansal said.

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Saturday, July 02, 2022