South Mumbai CGST officials bust Rs 18 crore fake input tax credit racket
India Today
The South Mumbai CGST Commissionerate busted a Rs 18 crore fake ITC racket and arrested the proprietor of a firm involved in the case.
The Anti-Evasion Unit of Mumbai South CGST Commissionerate busted a Rs 18 crore fake ITC (Input Tax Credit) racket on Wednesday. They also arrested the proprietor of Stallone Overseas Pvt.Ltd in relation to the case.
The firm was engaged in availing and passing on fake GST ITC of Rs 18 crore by using bogus invoices of more than Rs 98 crore.
Based on a tip from the Central Intelligence Unit of the Central Goods and Service Tax (CGST) Mumbai Zone, a team from the Anti-Evasion Wing of Mumbai South CGST Commissionerate initiated an investigation. The investigation revealed that this firm had availed fake ITC on the bogus invoices issued by more than 14 non-existent firms/entities and passed on this fake ITC to other firms.
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The accused was arrested on April 6 under Section 69 (Power to arrest) of the CGST Act. The crimes he committed were issuing an invoice without the supply of goods or services and availing an input tax credit using the invoice for said goods.
His offences are cognizable and non-bailable. He was sent to judicial custody for 14 days.
This case is a part of the Anti-Evasion drive launched by CGST, Mumbai Zone against tax evaders. As a part of this drive, CGST Mumbai South Commissionerate has detected tax evasion of approximately Rs 642 crores and has recovered around Rs. 10.89 crores.
