Fake ITC Network of Rs.14.43 Crore Busted; Businessman Arrested

The CGST Mumbai Commissionerate busted a Fake GST ITC racket via search operation on July 28, 2022, Thrusday which was used to claim fake GST Input Tax Credit. Around Rs.14.43 Crore on bogus invoices created to Avail Fake ITC.

The Businessman engaged in trading of ferrous waste, copper waste and scrap.

The anti-evasion division of the CGST Mumbai East Commissionerate opened an investigation on the company in response to a specific tip. Investigation revealed that the claimed business generated the bogus invoices without any goods sold and purchase on those invoices. Investigations further showed that this company had passed on falsely input tax credits totaling Rs.14.43 Crore. False invoices were generated in flagrant violation of the CGST Act’s 2017 requirements in order to receive and transfer this tax credit without having supplied or received any items, in order to claim ITC on it.

The accused was arrested after the search operation and remanded to 14 days judicial custody, for violating Section 132 of the CGST Act, 2017, based on material evidence acquired during the investigation and their acknowledgment of their involvement in this tax fraud.