3 Businessmen arrested in GST Fraud for Fraudulently claiming ITC through Fake Companies

The CGST Palghar commissionerate discovered a huge bogus Input Tax Credit (ITC) racket, resulting in the arrest of three individuals. The investigation uncovered fraudulent transactions of Rs. 59.11 crore involving eight non-existent entities, including the principal entity M/s H&D Company, situated in Palghar, Maharashtra.

This investigation was prompted by information received during the second All India Drive against fake registrations.

Chirag Ashok Raval, along with accomplices Swaraj Prafullchandra Dave and Parth Jitender Raval, planned the scam by registering fake companies in the names of family members.

These companies issued fraudulent invoices in order to claim ITC despite the fact that no genuine goods or services were supplied, in violation of GST legislation. The suspects received ITC worth Rs. 29.53 crore and transferred Rs. 29.58 crore through illegal activities.

They were arrested under Section 69 of the CGST Act, 2017, for violating Sections 132(1)(b) and (c), and are under judicial custody until September 25th, 2024.