CGST Commissionerate arrests two persons for availing and passing on fake ITC Rs.55 crore

Officers of CGST Bhiwandi Commissionerate in Mumbai Zone have busted two separate fake GST invoice rackets, which was used to avail and pass on fake Input Tax Credit (ITC) of around Rs. 23 crore on bogus invoices of Rs 55 crore. Two persons, proprietors of M/s M. M. Buildcon / Lambodar Buildcon and M/s. Vishwakarma Enterprises, have been arrested on 18.08.22 under CGST Act.

The CGST Bhiwandi Commissionerate’s anti-evasion division opened an investigation into these firms in response to a specific input. Both companies were discovered during the investigation to be fictitious or nonexistent. The owners acknowledged the fraud and tax avoidance in the statements. Additionally, input tax credits (ITC) of Rs. 23 crore are claimed and transferred on the basis of fictitious invoices generated by fictitious, false, unreliable, or dummy businesses.

The owners of both businesses were arrested on August 18, 2022, under Section 69 of the CGST Act, 2017 for violating Section 132 of the CGST Act, 2017, based on tangible evidence acquired throughout the inquiry.

This case is a part of the CGST Mumbai Zone’s specific campaign against ITC fraud networks and tax evaders. In the past year, CGST Bhiwandi Commissionerate has made 15 and 16 arrests.

To find and track down prospective fraudsters, CGST officials are employing network analysis and data analysis techniques. The CGST officers will step up their campaign against tax evaders in the coming days.