CGST Officials Arrest 3 Person in GST ITC Racket of Rs.100.63 Crores

In one of the incidents, two accused were arrested on the grounds that they were actively participating in the scam of obtaining and utilising fake/fraudulent ITC under the name and style of a corporation, by impersonating a Rickshaw Driver. The accused had conducted transactions in the firm only for the purpose of obtaining inadmissible credit and exploiting it without any actual movement of goods/services.

The total fraudulent ITC availed in the name of the abovementioned firm is Rs.100.63 Crores, with ITC worth Rs.75.36 Crores being passed on to other non-existent/fake/suspicious organisations. The accused persons were in charge of the firm’s records and return filing and were discovered to be in possession of other damning documents connected to the firm. Both individuals had breached the terms of Section 132 of the CGST Act, 2017 and were arrested on March 23, 2022, by authorities of Thane Rural CGST & C. Ex. Commissionerate under Section 69 of the CGST Act, 2017. On March 24, 2022, the suspects were brought before the Additional Chief Metropolitan Magistrate in Mumbai and remanded to judicial custody for 14 days.

In the second case, one person was arrested on March 24, 2022, on the basis that the accused was actively involved in availing fake/fraudulent ITC passed on by numerous non-existent/bogus/fraudulent businesses totaling Rs.7.55 Crores without actual movement of goods or services. The amount of fraudulent/fake ITC obtained is likely to increase as the inquiry progresses. On March 25, 2022, the accused appeared before the Additional Chief Metropolitan Magistrate in Mumbai and was remanded to judicial detention for 14 days.

In both incidents, more research is underway.