GST Fake Invoice racket of Rs. 263 crore busted by Central GST Officials

A Fake Goods and Services Tax (GST) invoice racket, which was used to falsely claim an Input Tax Credit (ITC) on fake invoices worth Rs 263 crores, involving an ITC of Rs 7.66 crore, has been busted in Mumbai.

GST officials said that the proprietor of a private firm named Shree Balaji Gold in connection with the case, has been arrested by the Central GST officials.

Official stated that CGST Mumbai Zone working on a tip-off received from the Central Intelligence Unit, the anti-evasion wing of CGST Mumbai South Zone commenced a probe against the firm for fraudulently availing fake Input Tax Credit (ITC) by issuing bogus invoices without actual supply of goods.

During the search conducted by the officials at the registered premises of Shree Balaji Gold, they found that no legal business operations were carried out at the place of business of this entity, as continued in the statement by the CGST officials.

During the inquiry, the proprietor of the firm agreed to his role in this tax fraud.

In further investigation, it has been revealed that this firm had fraudulently claimed an Input Tax Credit of Rs. 7.66 crores on invoices valued at Rs. 263 crores, without any supply of goods. The bogus invoices were received to avail the invalid input tax credit in a fraudulent manner, without the actual receipt of goods, in gross violation of the provisions of the CGST Act (Central Goods and Services Tax Act), 2017, said the investigating agency.

The accused was presented before the court and sent to judicial custody for 14 days.