Anti-Evasion Wing Arrests Businessman for Availing Fake GST Credit of Rs 12 Crore:

Anti-Evasion Wing Arrests Businessman for Availing Fake GST Credit of Rs 12 Crore Mumbai Businessman Arrested for Allegedly Availing Fake GST Credit of Rs 12 Crore The Anti-Evasion Wing of CGST and Central Excise, Mumbai Central, has arrested a Mumbai-based businessman in connection with an alleged GST fraud involving wrongful availment of Input Tax Credit amounting to approximately Rs 12.13 crore. The accused is named Fakhruddins Dahodwala and is the key person behind M/s Sikkander & Co. which is a firm operating in Mumbai. Investigators observed that the firm availed GST credit on the basis of invoices that were subsequently found to be non-existent, non-operational or fictitious. CGST Commissionerates and State GST authorities often gave information about suspicious transactions emerging from the firm and consequently, the investigation was conducted. Investigation revealed that several supplier companies were not functioning from their declared places of business. Many registrations had also been cancelled retrospectively by the authorities as they allegedly transferred inadmissible GST credit amounting to crores to M/s Sikkander & Co. On field, the officers reportedly found out that the company was not operating from its registered business premises and affairs of the business, including procurement, sales transactions, banking operations and GST compliance activities, were controlled by the accused. Evidence gathered during the investigation proved that GST returns, invoices and e-way bills were being generated under the instructions of the accused and he has not furnished essential records relating to purchases and business transactions. The accused was subsequently arrested under the provisions of the CGST Act, 2017, which prescribe imprisonment and monetary penalties for serious tax fraud offences. Following the arrest, the accused was produced before the competent court and remanded to judicial custody. Further investigation is presently underway to identify other individuals and entities connected with the alleged racket.