Thane CGST arrests one person for Rs. 90.68 crores in Input Tax Credit fraud

Thane Central GST Commissionerate, Mumbai CGST Zone has arrested a mastermind who had opened a firm M/s. Doshi Marketing and was operating from Bhayander West in a major drive against fraudsters who are availing and utilising fake Input Tax Credit (ITC). In violation of the provisions of the CGST Act 2017, he engaged in fraudulent availment and utilisation of Input Tax Credit to the tune of Rs 90.68 crores without receiving the goods or services.

His company traded in Asbestos, cotton yarn, and sewing thread, among other things, and had fraudulently claimed Input Tax credit for a total value of Rs.503.80 crores. This was a paper transaction with no actual goods supplied and no E-way bills filed.

The mastermind accused was apprehended under the provisions of the CGST Act 2017 and remanded to judicial custody until November 5th by JMFC Court Thane.

In two separate cases, M/s. Trimurti Gems and M/s.Nikita Trading & Co, both of which operate in the Bhayander area, have been charged with fraudulently obtaining and passing on Input Tax Credit totaling Rs.292 crores. These businesses were no longer in operation, and their registrations had been revoked. Efforts are also being made to apprehend the masterminds in these cases.

More research is being conducted.