CA arrested by CGST Thane for generating bogus ITC worth Rs 92 crores

Officers from the CGST, Thane (Rural) Commissionerate arrested a Chartered Accountant for generating bogus input tax credits totaling Rs. 92 crores, involving bogus invoices totaling more than Rs. 500 crores without actual receipt of goods. The investigation revealed that the fraudulent had created a firm called M/s. Shraddha Electrical in Ambernath using the identity of a housewife (Thane).

An investigation also revealed that a group of people, including the arrested Chartered Accountant, were involved in a racket of generating fake ITC and passing it on downstream with no movement of goods. Following a thorough interrogation and admission by the Chartered Accountant that he had generated fake ITC and passed it on without any movement of goods, the officers arrested him under Section 69 of the CGST Act on the afternoon of December 14, 2021. He appeared in front of the Additional Chief Metropolitan Magistrate in Mumbai. He has been remanded in judicial custody for 14 days by the Hon’ble court. More research is being conducted.

This case of fake ITC detection is part of a special Anti-Evasion drive launched by the CGST, Mumbai Zone, which includes intensive data mining and data analytics using various IT tools. The goal of this drive is to assist honest and compliant taxpayers by eliminating the unfair competition created by the fake ITC, and thus assist honest and compliant taxpayers in order to maximise revenue in the service of the nation.