CGST Officers Arrests Chartered Accountant for Generating Bogus ITC worth Rs. 92 crore

CGST Officers Arrests Chartered Accountant for Generating Bogus ITC worth Rs. 92 crore The Thane (Rural) Commissionerate of the Central Goods and Services Tax (CGST) has detained a chartered accountant for generating bogus input tax credits worth Rs. 92 crores involving bogus invoices worth more than Rs. 500 crores without actual receipt of goods. The inquiry revealed that the fraudster created a company called M/s. Shraddha Electrical in Ambernath using the identity of a housewife (Thane). According to the investigation, a number of people, including the jailed Chartered Accountant, were involved in a racket of generating false ITC and passing it on downstream without any goods movement. The officers arrested him under Section 69 of the CGST Act in the afternoon of December 14, 2021, after a thorough interrogation and admission by the Chartered Accountant that he had generated fake ITC and passed it on without any movement of goods, thus violating the provisions of Section 132 of the CGST Act. He appeared before Mumbai's Additional Chief Metropolitan Magistrate. He has been remanded in judicial custody for 14 days by the Hon'ble court. More research is being carried out. This case of bogus ITC identification is part of CGST's Mumbai Zone's special Anti-Evasion programme, which involves extensive data mining and data analytics utilising various IT techniques. The goal of this campaign is to assist honest and compliance taxpayers, to eliminate the unfair competition created by the fake ITC, and to thus assist honest and compliant taxpayers with the goal of generating maximum revenue for the nation.