CGST Mumbai Arrests Partner of M/s Rushabh Bullion for Availing Fake GST Input Tax of Rs.7.11 Crores

The Anti-Evasion wing of CGST Mumbai South detained a partner of M/s Rushabh Bullion, a merchant of gold and silver items, today for obtaining a bogus GST Input Tax Credit (ITC) of Rs. 7.11 crores through fictitious/non-existent firms.

The investigation in this case was carried out based on information provided by the Mumbai Zone’s Central Intelligence Unit (CIU) at the Zonal Headquarters, which was led by the Principal Chief Commissioner. On 11.02.2022, a search was conducted at M/s Rushabh Bullion (GSTIN 27AAMR1367B1Z9principal )’s place of business. In his statement dated 12.02.2022, the partner of M/s Rushabh Bullion admitted to receiving ineligible ITC amounting to Rs. 7.11 Crores from two entities, namely M/s. Goldmine Bullion, Mumbai and M/s Riddhi Siddhi Gold, Mumbai, which were discovered to be fake/non-existent upon verification of their Principal Place of Business. M/s Rushabh Bullion obtained a bogus ITC from M/s Goldmine Bullion and M/s Riddhi Siddhi Gold for Rs. 4.89 crores and Rs. 2.22 crores, respectively.

Based on evidence gathered during the inquiry and statement, M/s Rushabh Bullion’s Partner was arrested under Section 69 of the CGST Act, 2017 for committing offences under Section 132(1)(c) read with Section 132(5) of the CGST Act, 2017. On February 12, 2022, he appeared before the Additional CMM court in Mumbai and was sent in judicial detention for 14 days.

This case is part of the CGST, Mumbai Zone’s anti-evasion campaign against tax evaders. CGST Mumbai South Commissionerate has uncovered tax evasion of more than Rs. 570 Crores, recovered Rs. 7 Crores, and arrested 8 people as part of this drive in the recent six months.

The CGST department is utilising data analytics and network analysis techniques to identify possible tax evaders, as well as collaborating with other tax agencies to apprehend tax evaders. In the following days and months, the department intends to step up its anti-evasion efforts.