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March 9, 2022

29 year old man arrested for involvement in fake GST ITC racket

by CA Shivam Jaiswal in Income Tax

29 year old man arrested for involvement in fake GST ITC racket

As a part of the special Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders, CGST Commissionerate, Raigad has arrested a 29 year old man, who actively connived in creation of more than 15 sham firms, which were used for generation, availment and utilization of fraudulent GST Input Tax Credit (ITC) of Rs. 33 Crore by issuing bogus invoices of more than Rs. 180 Crore.

During the investigation, he admitted his role in generation of sham firms and generation, availment and utilization of fake ITC and filing of GST Returns for these fake entities. He was arrested on 04.03.2022 under Section 69 of the Central Goods and Services Act, 2017 for committal of offences under Section 132 of the said Act and was produced before the Judicial Magistrate, Panvel, wherein he has been sent to judicial custody for 14 days.

This is the third arrest in last fortnight by the CGST Commissionerate, Raigad. Earlier, proprietors of two Kalamboli based firms namely M/s Ashok Metal Scrap and M/s Zaid Enterprises were arrested. These two firms traded in metal scrap and were involved in Input Tax Credit scams of Rs. 25 Crore involving bogus invoices of Rs. 135 Crore.

The CGST department is doing extensive data mining, using data analytics and network analysis tools to identify tax evaders. Additionally, officers of Raigad Commissionerate are also keeping a close watch on possible fake entities, which are mushrooming & operating from Taloja, Navi Mumbai.

Department is going to intensify its drive against the fraudsters and tax-evaders in the coming days and months.

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