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May 16, 2022

Officers of THANE CGST(Mumbai Zone)busted a Fake ITC network of Rs 8 Crore

by CA Shivam Jaiswal in Circular and Notifications

Officers of THANE CGST(Mumbai Zone)busted a Fake ITC network of Rs 8 Crore

The anti-evasion wing of the CGST Thane Commissionerate launched a probe into M/s. J. J. Lime Depot, which deals in building material trading, based on a specific information from the Central Intelligence Unit of the CGST Mumbai zone. This company had falsely claimed an input tax credit of Rs. 8.05 crore in its financial documents, according to the investigation. This firm had also generated false invoices totaling more than Rs. 40 crore for the transfer of this tax credit, despite the fact that no products had been supplied, in clear contravention of the CGST Act, 2017. The proprietor of this organisation admitted to issuing fraudulent bills to various Mumbai-based infrastructure companies for commission in his statement recorded during the investigation.

On May 12, 2022, he was arrested under Section 69 of the CGST Act, 2017 for violating Section 132 of the CGST Act, 2017. On 13.05.2022, he appeared before the Hon’ble Chief Metropolitan Magistrate, Esplanade. He has been remanded in judicial custody for 14 days by the Magistrate. To identify suspected fraudsters, CGST officers use data analysis and network analysis techniques. During the fiscal year 2021-22, the CGST Thane Commissionerate discovered Rs. 1354 crore in GST evasion, recovered Rs. 34 crore, and arrested seven tax cheats. This fiscal year, the CGST Commissionerate Thane would continue to pursue tax evaders.

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