Mumbai man arrested for tax fraud, creating shell companies, issuing fake invoices of over Rs 180 crore

Officials from CGST Commissionerate in Raigad, Mumbai, arrested a 29-year-old man for creating over 15 shell firms to generate fake Input Tax Credit. The firms were issuing bogus invoices of over Rs 180 crore.

While conducting the special Anti-Evasion drive, officials from CGST Raigad, under the Mumbai Zone, arrested a 29-year-old for creating shell companies to generate fraudulent Input Tax Credit (ITC).

The accused actively connived in creating more than 15 sham firms, which were used for generation, availment and utilisation of fraudulent GST Input Tax Credit (ITC) of Rs. 33 Crore by issuing bogus invoices of more than Rs 180 crore.

During the investigation, he admitted to his role in the generation of sham firms and generation, availment and utilisation of fake ITC and filing of GST Returns for these fake entities. This person, a resident of Panvel, happens to be a BMS (Bachelor of Management Studies) graduate.

Also Read: CISF will have more women personnel, says Amit Shah on 53rd Raising Day ceremony

He was arrested on Friday, March 4, under Section 69 of the Central Goods and Services Act, 2017 for committing offences under Section 132.

He was produced before the Judicial Magistrate, Panvel, wherein he was sent to judicial custody for 14 days. This is the third arrest in the last fortnight by the CGST Commissionerate, Raigad.

Earlier, proprietors of two Kalamboli-based firms, namely M/s Ashok Metal Scrap and M/s Zaid Enterprises were arrested. These two firms traded in metal scrap and were involved in Input Tax Credit scams of Rs 25 crore involving bogus invoices of Rs 135 crore.