CGST Officials arrests one person for availing and passing on fake ITC of Rs.181.67 Crores

The CGST Officials, Navi Mumbai has arrested the Director handling the business activities of M/s Robosteel Trading Pvt. Ltd. (GSTIN:AACCR8701J1Z 8) on the charges of availing/ utilizing/ passing on fake Input Tax Credit (ITC) which was received from bogus/ fake entities amounting to Rs 181.67 Crores (Availed Rs.87.48 Crores and passed on Rs.94.19 Crores).

A team of officers from Anti-Evasion, CGST, and C.Ex. Navi Mumbai investigated the aforementioned company. The aforementioned company has received and used ITC in the amount of Rs. 181.67 crores from fictitious/bogus businesses on the basis of fictitious invoices that were received and forwarded on the same. Without any genuine provision of products or services, there was a total of Rs. 1075.37 crores worth of fictitious bills involved.

According to Section 132(1)(b) & (c) of the CGST Act, 2017, if a taxpayer issues invoices and/or bills without the supply of goods or services or both, resulting in the wrongful availment or utilisation of input tax credit, or utilises input tax credit using such an invoice or bill, the Section 132(1)(i) makes the taxpayer liable for a term of imprisonment that may last up to five years as well as a fine. Additionally, the offences listed above are cognizable and not subject to bail under Section 132(5).

The aforementioned suspect was detained for 14 days in judicial custody after being taken into custody in accordance with Section 69(1) of the Central Goods and Services Act, 2017 for committing offences under Sections 132(1)(b) and (c) of the same Act. On September 7, 2022, the suspect was brought before Judicial Magistrate First Class, Vashi in Belapur.

This case is a part of the Anti-Evasion campaign against fraudsters and tax evaders that the CGST, Mumbai Zone established to put unfavourable competition between compliant taxpayers and to steal money from the government coffers. The Navi Mumbai Commissionerate recently identified 600 crore rupees in tax evasion as part of its campaign, recovered 20 crores, and detained 18 people.