Tax Evasion of Rupees 5,500 Crore Detect in Five Months by GST Officials in Mumbai

The finance ministry said in a statement that GST Officials in the Mumbai zone had booked more than 625 tax evasion cases and discovered evasion worth Rs 5,500 crore in the last five months.

As part of the anti-evasion operation, they have also seized 630 crore and detained 48 persons, according to the statement.

“In the next days and months, the CGST department will increase the drive against fraudsters and tax evaders who are unfairly competing with honest taxpayers and depriving the government exchequer of its legitimate money,” according to the statement.

The CGST Commissionerate in Navi Mumbai busted a fraudulent tax credit racket on Wednesday, according to the ministry. The company was accused of obtaining and using false input tax credits on phoney invoices totaling $60 million. The company deals in aluminum and steel raw materials and completed products. According to the statement, an investigation revealed that the taxpayer allegedly received and passed on phoney input tax credits from a number of non-existent or fictitious businesses.

According to the statement, this was part of an anti-evasion campaign initiated by the CGST, Mumbai Zone, targeting fraudsters and tax evaders who were generating unhealthy competition for compliant taxpayers and robbing the government. The Navi Mumbai Commissionerate recently discovered 425 crore in tax evasion, collected $20 million, and arrested 11 people as part of this operation. According to the CGST Department, data analysis is being used to detect tax evaders.