CGST Mumbai Central Commissionerate busts a racket of fake ITC generators

Officers from the CGST Mumbai Central Commissionerate busted a ring of bogus Input Tax Credit (ITC) generators who were passing phoney ITC worth Rs 35 crores to various firms. The mastermind has been apprehended for producing and distributing bogus credit to more than 15 organisations in and around Mumbai. The accused individual was getting bogus ITCs and sending them down the supply chain without really receiving or supplying items. On Tuesday, he was detained and brought before the Chief Judicial Magistrate under section 69 of the CGST Act (December 7, 2021). He has been detained in judicial custody for a period of 14 days.

This arrest is one of several made by the CGST Mumbai zone in the last three months as part of a specific campaign against persons who create fictional organisations in order to obtain and pass on phoney ITC. In the last three months, Mumbai zone officers have discovered more than 50 tax evasion networks, uncovered tax evasion worth Rs. 3000 crores, recovered tax worth Rs. 400 crores, and arrested 24 people.

The CGST department has been working to clear up the phoney entities and tax evaders who are producing and using fake ITCs without actually receiving or supplying products in order to help honest taxpayers. To improve tax collection, the CGST department will continue its special endeavour by conducting extensive data mining and data analytics, as well as gathering specific intelligence from other sources.