Ministry of Finance
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CGST Commissionerate, Raigad of CGST Mumbai Zone busts a fake ITC racket

Case is a part of special Anti-Evasion drive launched by CGST

Posted On: 18 FEB 2022 7:14PM by PIB Mumbai

Mumbai, 18 February 2022


CGST Commissionerate, Raigad of CGST Mumbai Zone has busted a fake ITC racket and arrested the proprietor of a Kalamboli based firm M/s. Ashok Metal Scrap. This firm was engaged in availing and passing on of fake GST Input Tax Credit (ITC) of Rs. 12 Crore, by using bogus invoices of more than Rs. 64 Crores.

Based on tip off from Central Intelligence Unit (CIU) of CGST Mumbai zone, a team from Anti-Evasion Wing of CGST Commissionerate Raigad initiated an investigation, which revealed that this firm had availed fake ITC on the basis of bogus invoices issued by more than 20 non-existing firms and passed this fake ITC to other firms. The proprietor of the firm evaded the investigation proceedings and was absconding since October 2021. He was traced after continuous vigil at various locations in Mumbai and Rajasthan.

The accused was arrested on 17.02.2022 under Section 69 of the Central Goods and Services Act, 2017 for committal of offences under Section 132 of the said Act and was produced before the Judicial Magistrate First class, Panvel on the same day, wherein he has been sent to judicial custody for 14 days.

This case is a part of special Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer. Raigad Commissionerate has detected tax evasion of Rs. 675 Crore and recovered Rs. 403 Crore and arrested 8 persons, in the financial year 2021-22. The CGST department is using data analytics and network analysis tools to identify tax evaders and department is going to intensify its drive against the fraudsters and tax evaders in the coming days and months.


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(Source: CGST PRO)/PIB Mumbai | CP/DR


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