CGST Officials busts fake GST Input Tax Credit Fraud of Rs.15.23 Crore

CGST Officials busts fake GST Input Tax Credit of Rs.15.23 Crore The Central Goods and Services Tax (CGST) Commissionerate, Mumbai West Zone, has busted a bogus GST Input Tax Credit (ITC) fraud and arrested the owner of a Malad-based company. In violation of the provisions of the CGST Act, 2017, the firm was involved in the fraudulent availment and passing of Input Tax Credit (ITC) of Rs.15.23 Crore without receiving or supplying products. An investigation was launched against M/s Pacific Pharma, which deals in chemical trafficking, based on a tip from the Central Intelligence Unit of the CGST Mumbai Zone. The CGST Mumbai Zone discovered that fraudulent bills totaling roughly Rs.105 crore were created for this tax evasion. The firm's owner was arrested under Section 69 of the CGST Act, 2017 for violating Section 132 of the CGST Act, 2017 and was scheduled to appear before the Additional Chief Metropolitan Magistrate, Esplanade on April 28, 2022. The Magistrate has remanded him in judicial prison for 14 days. More research is being conducted. This investigation is part of CGST Mumbai Zone's efforts to combat phoney ITC networks and tax evaders, which have been causing unfair competition with honest taxpayers and robbing the government. As part of these efforts, the CGST, Mumbai West Commissionerate has found fake ITC of Rs.465.75 crore, recovered Rs.35.57 crore, and arrested five people in the last six months.