CGST Official Busts Fake GST Invoice Racket of Rs.10.61 Crore; Proprietor Arrested

The officers of the Anti-Evasion wing of CGST Commissionerate Mumbai West of Mumbai Zone have unearthed a fake Input Tax Credit (ITC) Network of Rs 10.61 Crores involving bogus invoices of more than Rs 76 Crores and arrested the Proprietor of a Malad-based company for GST fraud.

Following a tip, a probe into M/s Sanghvi Traders discovered that false input tax credits (ITCs) totaling Rs. 10.61 crores were obtained and transferred without any genuine products being purchased or supplied, in flagrant violation of the CGST Act’s 2017 provisions. In order to commit this scam, false invoices totaling more than Rs. 76 Crore were generated.

In a statement he made over the course of the investigation, the owner of this business acknowledged his involvement in the GST fraud. He was detained on July 27, 2022, for violating Section 132 of the CGST Act, 2017, in accordance with Section 69 of that law. On July 27,2022, he was presented before the Honorable Additional Chief Metropolitan Magistrate at Esplanade. He will be held in judicial detention for 14 days, according to the magistrate’s order.

To find potential fraudsters, Mumbai Zone cops are use network analysis and data analysis techniques. This case is a component of a special campaign the CGST Mumbai Zone conducted against bogus ITC network dealers and other fraudsters who have been unfairly competing with sincere taxpayers.

The CGST Mumbai West Commissionerate found Rs. 603.88 crores in GST evasion during the financial year 2021–2022; it also recovered Rs. 68.21 crores and detained 7 tax cheats. In the upcoming days, the CGST Mumbai West Commissionerate will step up its campaign against fraudsters and false businesses that are involved in obtaining and disseminating fake ITC.