CGST Commissionerate busts GST Fake Invoice Racket of Rs.263 Crore; One Person Arrested

The CGST Mumbai South Commissionerate’s Officers busted a GST fake invoice racket worth Rs. 263 crores, involving a fake GST Input Tax Credit (ITC) worth Rs. 7.66 crores, and arrested the proprietor of M/s Shree Balaji Gold.

Acting on a specific input received from Central Intelligence Unit headed by Principal Chief Commissioner, CGST, Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate had initiated an investigation.

Based on CIU intelligence and additional intelligence gathered, an investigation was launched against M/s. Shree Balaji Gold for obtaining and passing on fake ITC by issuing invoices without actual supply of goods.

During a search of M/s. Shree Balaji Gold’s registered premises, it was discovered that no legitimate business operations were carried out from the said entity’s principal place of business.

The proprietor of the firm joined the investigation on October 19, 2023 and his statement was recorded in which he admitted his role in this tax fraud.

Investigation revealed that this firm had fraudulently claimed input tax credit on bogus invoices totaling Rs. 263 crores, involving in ITC of Rs. 7.66 crores without the supply of goods. The bogus invoices were received for availing inadmissible input tax credit, in a fraudulent manner without actual receipt of goods, in gross violation of provisions of the CGST Act, 2017.

The accused person was arrested on October 20, 2023, under Section 69 of the CGST Act, 2017, for violating Section 132 of the CGST Act, 2017, based on material evidence gathered during the investigation and his admission of his role in this tax fraud. He appeared in front of the Hon’ble Additional Chief Metropolitan Magistrate of Esplanade. He has been remanded in judicial custody for 14 days by the Magistrate.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days.